In view of FX Strategists at UOB Group, the pair sticks to its neutral perspective in the near term horizon.
24-hour view: “The anticipated NZD weakness exceeded our expectation by taking out the strong 0.7200 support. The subsequent strong rebound from a low of 0.7184 suggests that a temporary low is in place. However, it is too early to expect a sustained up-move. NZD is more likely to consolidate its loss and trade sideways at these lower levels. Expected range for today; 0.7205/0.7255”.
Next 1-3 weeks: “NZD dipped to a low 0.7184 yesterday, not that far from the bottom of our expected 0.7170/0.7300 consolidation range. The down-move lacks impulsiveness and at this stage, a sustained break below 0.7170 seems unlikely. In other words, we continue to hold the view that NZD is trading in a broad and choppy range of 0.7170/0.7300”.
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