NZD/USD poised for further consolidation – UOB

NZD/USD is expected to keep the 0.6870-0.7000 range unchanged in the short term, suggested FX Strategists Quek Ser Leang and Lee Sue Ann at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘despite the decline, downward momentum has not improved by much and NZD is unlikely to weaken much further’ and we expected NZD to ‘trade sideways between 0.6890 and 0.6950’. Instead of trading sideways, NZD rose to a high of 0.6967. The advance appears to be running ahead of itself and NZD is unlikely to strengthen much further. For today, NZD is more likely to consolidate and trade within a range of 0.6920/0.6975.”

Next 1-3 weeks: “There is no change in our view from last Friday (01 Apr, spot at 0.6935). As highlighted, the recent build-up in momentum has fizzled out and NZD is likely to trade sideways within a range of 0.6870/0.7000.”