NZD/USD seen sidelined in the near term – UOB

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

Key Quotes

24-hour view: “We highlighted yesterday “NZD could extend its decline but 0.6350 could be out of reach”. NZD subsequently dipped to 0.6360 before trading mostly sideways. Downward pressure has eased and the current price action is viewed as part of a consolidation phase. In other words, NZD is expected to trade sideways for today, likely between 0.6350 and 0.6385”.

Next 1-3 weeks: “There is not much to add to the update from yesterday (06 Nov, spot at 0.6380). As highlighted, we continue to hold the view that Monday’s 0.6466 high is a “short-term top” and NZD is expected to “trade sideways”. However, if NZD were to close below the bottom of the expected 0.6350/0.6450 range, it would suggest 0.6466 is a more significant top than currently expected (and increase the risk of a pullback to 0.6300). The price action within these few days should provide us with more clues”.