NZD/USD seen sidelined between 0.6585 and 0.6680 – UOB
In opinion of FX Strategists at UOB Group, NZD/USD is expected to keep the rangebound theme intact in the 0.6585-0.6680 area for the time being.
24-hour view: “We held the view yesterday that NZD ‘could edge lower but any weakness is viewed as a lower trading of 0.6595/0.6640’. We added, “a sustained decline below 0.6595 is not expected”. NZD briefly dipped to 0.6593 before recovering quickly. Downward pressure has eased and the current movement is viewed as part of a consolidation phase. In other words, NZD is expected to trade sideways for today, likely between 0.6595 and 0.6630.”
Next 1-3 weeks: “NZD traded in a quiet manner and closed little changed at 0.6609 yesterday (-0.03%). There is no change to our view from last Friday (17 Jan, spot at 0.6635) wherein NZD is expected to trade sideways between the two major levels of 0.6585 and 0.6680 for now. Looking forward, the bottom of the expected range appears to be more vulnerable. That said, there is another solid support at 0.6555 but this level is unlikely to come into the picture anytime soon.”