Further rangebound between 0.6495 and 0.6620 is expected in NZD/USD in the next weeks, noted FX Strategists at UOB Group.
24-hour view: “NZD traded between 0.6525 and 0.6582 yesterday, wider than our expected range of 0.6525/0.6570.While further consolidation would not be surprising, the firmed underlying tone suggests a higher trading range of 0.6535/0.6595.”
Next 1-3 weeks: “On Tuesday (14 Jul, spot at 0.6535), we held the view that NZD ‘could edge lower but any weakness is viewed as part of a 0.6450/0.6595 range’. However, NZD rose towards the top of the expected range instead (overnight high of 0.6582). While the prospect for NZD to edge lower to 0.6450 has diminished, NZD does not appear to be ready to move higher in a sustained manner. In other words, NZD could trade sideways from here, likely within a broad 0.6495/0.6620 range.”
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