NZD/USD faces extra consolidation near-term – UOB

The Kiwi Dollar is seen keeping the consolidative mood vs. the greenback in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD traded between 0.6405 and 0.6431 yesterday, narrower than our expected sideway-trading range of 0.6395/0.6430. The daily closing in NY is on the firm side (0.6430, +0.22%) and the immediate bias is tilted to the upside. However, momentum is lackluster and any advance in NZD is likely limited to a test of 0.6440. The major 0.6465 level is not expected to come into the picture. Support is at 0.6410 followed by 0.6395”.

Next 1-3 weeks: “There is not much to add as NZD continue to trade sideways. While the underlying tone has improved somewhat, any advance is not unlikely to move above the month-to-date high near 0.6465. In other words, the sideway-trading phase that about 2 weeks ago remains intact as NZD is likely to continue to trade between 0.6350 and 0.6465 for a while more”.