NZD/USD seen sidelined near term – UOB

According to FX Strategists at UOB Group, the pair is expected to remain rangebound in the next weeks.

Key Quotes

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”.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.