NZD/USD neutral, within range near term – UOB

FX Strategists at UOB Group see the Kiwi Dollar clinging to its neutral stance vs. the buck in the near term.

Key Quotes

“Expectation for sideway trading was wrong as NZD dropped sharply to hit an overnight low of 0.7245. However, the subsequent sharp and swift rebound from the low is gaining momentum and there is scope for extension to 0.7305. This a rather critical resistance and a break of this level could lead to a quick move higher to 0.7330. Support is at 0.7265 and the 0.7245 low is likely strong enough to hold any intraday pullback”.

“NZD dipped and touched a low of 0.7245 yesterday before rebounding strongly. The price action reinforces our current neutral outlook and we maintain the same view that NZD is trading in a 0.7230/0.7350 consolidation range for now”.