NZD/USD expected to remain side-lined – UOB

In opinion of FX Strategists at UOB Group, NZD/USD is expected to keep the consolidative stance unchanged for the time being.

Key Quotes

24-hour view: “We highlighted yesterday that NZD ‘could edge above 0.6040’ and added, ‘the next resistance at 0.6075 is likely out of reach’. NZD subsequently rose to 0.6575 before easing off. The combination of waning momentum and overbought condition suggests NZD has likely moved into a consolidation phase. For today, NZD is likely to trade between 0.5975 and 0.6040.”

Next 1-3 weeks: “We highlighted last Friday (24 Apr, spot at 0.5945) that NZD ‘is not ready to move out of 0.5900/0.6100 range just yet’. NZD rose to 0.6075 yesterday (27 Apr) and the swift pullback from the high reinforces our view. At this stage, there is no early indication on whether which side of the range is more vulnerable. In other words, NZD could trade between the two major levels for a while more.”