NZD/USD seen between 0.6495/0.6620 near-term – UOB

NZD/USD is expected to navigate within the 0.6495/0.6620 range in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected NZD to ‘test the 0.6585 resistance’. Our expectation did not materialize as it traded between 0.6539 and 0.6576 before closing on a firm note at 0.6575 (+0.26%). Upward momentum has improved a tad and the bias from here is on the upside. That said, any advance is unlikely to threaten the major resistance at 0.6620 (0.6600 is already a strong level). Support is at 0.6555 followed by 0.6540.”

Next 1-3 weeks: “On Tuesday (14 Jul, spot at 0.6535), we held the view that NZD ‘could edge lower but any weakness is viewed as part of a 0.6450/0.6595 range’. However, NZD rose towards the top of the expected range instead (overnight high of 0.6582). While the prospect for NZD to edge lower to 0.6450 has diminished, NZD does not appear to be ready to move higher in a sustained manner. In other words, NZD could trade sideways from here, likely within a broad 0.6495/0.6620 range.”