NZD/USD looks consolidative above 0.6660 – UOB
In view of FX Strategists at UOB Group, the Kiwi Dollar is seen attempting some consolidation above the 0.6660 level in the next weeks.
24-hour view: “Although our downside target for NZD at 0.6600 (low: 0.6586) was met overnight, the subsequent strong rebound was totally unexpected. Recent range highs at around 0.6655/60 may come into focus today though it is probably too early to call for a sustained recovery beyond which. On the other hand, supports are at 0.6605 and 0.6590.”
Next 1-3 weeks: “Our previous rhetoric (06 Jan, spot at 0.6655) was that “NZD has found a short-term top and the current pull-back could test 0.6590”. Overnight, NZD touched as low as 0.6586. However, the subsequently strong recovery back above 0.6600 indicated a “rejection” of the key level. What is means is that while the next direction is still for a lower NZD, in the coming sessions NZD may first consolidate in a small range above 0.6600 first. Rallies are likely to be limited to 0.6650 while supports are at 0.6600 and 0.6590.”