NZD/USD: Further range bound trade seems on the cards – UOB

NZD/USD could now trade between 0.6125 and 0.6260 in the next weeks, suggest FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘momentum indicators are flattish’ and we expected NZD to ‘consolidate and trade within a range of 0.6160/0.6220’. Our view was for consolidation was correct even though NZD traded within a slightly narrower range than expected (0.6164/0.6219). The relatively quiet price actions suggest further consolidation would not be surprising. Expected range for today, 0.6160/0.6220.”

Next 1-3 weeks: “Our update from yesterday (24 Aug, spot at 0.6195) still stands. As highlighted, NZD is unlikely to weaken further. From her, NZD could trade between 0.6125 and 0.6260 for a period of time.”