NZD/USD consolidative between 0.7120-0.7350 – UOB

NZD/USD keeps the neutral stance so far, poised for a continuation of the rangebound theme between 0.7120 and 0.7350 in the next weeks.

Key Quotes

“The anticipated NZD strength exceeded our expectation by easily taking out the strong 0.7255 resistance (high has been 0.7325 during early Sydney hours). The up-move is clearly over-extended and a sustained move above 0.7325 is not expected, at least not for today”.

“We turned neutral on NZD yesterday and did not expect the strong and sudden bounce. While momentum has improved, we are not convinced that the current NZD strength can move significantly above last week’s 0.7350 high. From here, we prefer to continue to hold a neutral view but expect a higher 0.7170/0.7350 consolidation range”.