NZD/USD poised for extra rangebound – UOB

The Kiwi Dollar is seen sidelined vs. the buck in the next weeks, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “While the ‘target’ indicated at 0.7260 yesterday was exceeded, the subsequent sharp and rapid pullback from a high of 0.7263 was not exactly expected. NZD has likely made a short-term top and the current price action is viewed as part of a consolidation phase. In other words, we expect NZD to trade sideways from here, likely within a 0.7180/0.7240 range”.

Next 1-3 weeks: “NZD edged above the key 0.7260 resistance (high of 0.7263) and as mentioned yesterday, a breach of this level would indicate that the 0.7154 low seen earlier this week is a short-term bottom. In other words, the recent mild downward pressure has eased. However, the more than one-month long neutral phase is still intact but NZD is more likely to trade sideways for now, likely between 0.7160 and 0.7300”.