NZD/USD seen sidelined near term – UOB

The Kiwi Dollar is expected to keep the sideline theme in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD traded in a relatively wide range between 0.6817 and 0.6913 last Friday. The outlook from here is mixed and sideway trading is expected, likely to be within last Friday’s range”.

Next 3-weeks: “NZD rebounded strongly last Friday and took out the strong 0.6900 resistance (high of 0.6913). Despite the quick pull-back from the high, the mild downward pressure highlighted in recent updates has eased. However, there is no change to the current neutral outlook and from here, NZD is expected to trade sideways, likely within a 0.6815/0.6935 range. Looking further ahead, a break of 0.6935 could signal the start of a stronger recovery towards last month’s peak near 0.6980”.