According to FX Strategists at UOB Group, the pair is expected to remain rangebound in the next weeks.
24-hour view: “Expectation for 0.7045 to cap any intraday rebound yesterday was wrong as NZD hit a high of 0.7053 before plunging quickly to a low of 0.6975. The subsequent sharp swing higher from the low has resulted in a mixed outlook. Further choppy trading is expected, but a break out of yesterday’s 0.6975/0.7053 range seems unlikely”.
Next 1-3 weeks: “There is not much to add as NZD briefly touched 0.7053 yesterday, holding just below the top of our expected 0.6950/0.7060 sideway consolidation range. The swift pullback reinforces our neutral view and we continue to expect NZD to trade sideways for now, likely within a 0.6950/0.7060 range”.
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