NZD/USD is still seen navigating within the 0.6560-0.6700 range for the time being, in opinion of FX Strategists at UOB Group.
24-hour view: “While we held the view yesterday that ‘further NZD weakness is unlikely’, we expected NZD to ‘trade within a 0.6565/0.6620 range’. However, NZD took off and surged to a high of 0.6676 before closing on a strong note at 0.6655 (+1.14%). The sharp and swift rally appears to be running ahead of itself and further sustained NZD strength is unlikely for today. NZD is more likely to take a breather and trade between 0.6615 and 0.6680 for today.”
Next 1-3 weeks: “We have held the same view since last Friday (16 Oct, spot at 0.6600) wherein ‘downward momentum has improved tentatively; NZD has to close below 0.6570 before a more sustained down-move can be expected’. NZD dropped to a low of 0.6555 on Tuesday (20 Oct) but did not close below 0.6570. The break of 0.6660 yesterday indicates that the recent mild downward pressure has eased. The current movement is viewed as part of a consolidation phase and NZD is likely to trade within a 0.6560/0.6700 range for now.”
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