NZD/USD poised for further rangebound – UOB

FX Strategists at UOB Group expect NZD/USD to extend its consolidative pattern between 0.6950 and 0.7090 for the next 103 weeks.

Key Quotes

“We were of the view that “a move above 0.7065 is not ruled out but last week's peak near 0.7090 is not expected to yield so easily”. In line with expectation, NZD hit a high of 0.7068 but the up-move was quickly reversed. The recent positive undertone has eased and the current movement is viewed as part of a consolidation phase. In other words, expect sideway trading from here, likely within the 0.7002/0.7068 range seen yesterday”.

“There is not much to add and we continue to view the current movement as part of a 0.6950/0.7090 consolidation range. While upward momentum is ticking higher, only a clear break above 0.7090 would indicate that a move towards 0.7130, 0.7160 has started. From here, upward momentum would continue to improve unless there is a move back below last Friday’s low near 0.6995”.