Extra rangebound looks likely in NZD/USD – UOB

Following the recent performance of NZD/USD, FX Strategists at UOB Group now expect the continuation of the sideline trading.

Key Quotes

24-hour view: “NZD did not quite ‘probe the 0.6390 support’ as it rebounded after briefly dipping to 0.6402. Momentum indicators are mostly ‘neutral’ and NZD is likely to trade sideways from here. Expected range for today, 0.6405/0.6435”.

Next 1-3 weeks: “After briefly rising to 0.6437 last Thursday (21 Nov), NZD traded sideways and stayed within a 40 pips range. The price action is in line with our view from last Friday (22 Nov, spot at 0.6405) wherein NZD ‘could trade sideways for a while more’. However, in view of the quiet price action, a 0.6380/0.6465 range is likely enough to contain the movement in NZD from here (narrowed from 0.6350/0.6465)”.