NZD/USD stays neutral between 0.7130 and 0.7240 – UOB

The outlook on the Kiwi Dollar remains neutral for the time being, likely to gravitate in the 0.7130/0.7240 range vs. the buck, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD traded in a relatively narrow 0.7163/0.7196 range yesterday before surging higher to hit a high of 0.7217 after the release of NZ inflation data. The sharp and rapid drop from the high suggests that NZD is trying to form a short-term top. From here, allow for a bounce to 0.7205 but 0.7220 is expected to cap for a deeper pullback to 0.7155”.

Next 1-3 weeks: “NZD edged above the strong 0.7200 resistance and hit a high of 0.7217 early this morning. The up-move appears to be running ahead of itself and we do not anticipate further sustained NZD strength from here. Despite the positive undertone, NZD is more likely to consolidate its recent gains and trade sideways at these higher levels, likely within a 0.7130/0.7240 range”.