NZD/USD: Further rangebound looks likely – UOB

NZD/USD is forecast to navigate within the 0.6985-0.7090 range for the time being, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected NZD to ‘trade sideways within a 0.7015/0.7055 range’ yesterday. NZD subsequently traded within a narrower range than expected (0.7012/0.7044). The quiet price actions offer no fresh clues and NZD could continue to trade sideways, expected to be between 0.7010 and 0.7045.”

Next 1-3 weeks: “There is not much to add to our update from last Thursday (12 Aug, spot at 0.7040)/ As highlighted, NZD is likely to trade between 0.6985 and 0.7090 for now. Looking ahead, the downside risk appears to be greater but NZD has to close below the major support at 0.6965 before a sustained decline can be expected.”