NZD/USD now faces some consolidation – UOB

NZD/USD is now seen navigating within the 0.7230-0.7360 for the time being, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected NZD to ‘trade sideways between 0.7230 and 0.7300’ yesterday. NZD subsequently dropped to 0.7210 before rebounding strongly to an overnight high of 0.7303. The rebound has room to test 0.7320 first before easing. The next resistance at 0.7360 is unlikely to come into the picture. Support is at 0.7275 followed by 0.7230.”

Next 1-3 weeks: “On Monday (01 Mar, spot at 0.7270), we held the view that NZD ‘is under pressure but the support at 0.7200 may not come into the picture so soon’. We did not quite anticipate the short-lived drop to 0.7210 yesterday and the subsequent sharp rebound. Downward momentum has more or less dissipated and NZD is likely to trade between 0.7230 and 0.7360 for now.”