NZD/USD could see the continuation of the consolidative range ahead of further losses, noted FX Strategists at UOB Group.
24-hour view: “NZD traded between 0.6540 and 0.6567 yesterday, narrower than our expected consolidation range of 0.6525/0.6575. Momentum indicators are still mostly neutral and NZD could continue to trade sideways for today, albeit likely within a higher range of 0.6540/0.6595.”
Next 1-3 weeks: “We have held a negative view in NZD since early last week. In our latest narrative from last Thursday, we highlighted that the outlook for NZD remains weak and ‘the next level to focus on is at 0.6490’. There is no change to our view even though shorter-term momentum has slowed somewhat and 0.6490 may not come into the picture so soon. From here, NZD could consolidate for a couple of days first before pushing lower towards 0.6490. Only a break of 0.6610 (no change in ‘strong resistance’ level) would indicate that the current downward pressure has eased.”
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