NZD/USD expected to extend the sideline theme – UOB

The Kiwi Dollar is expected to continue its consolidative theme vs. the greenback in the short-term horizon, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD traded sideways as expected albeit at a lower range than anticipated. The undertone has weakened somewhat and the immediate bias is tilted to the downside. That said, any decline is expected to encounter solid support at 0.6790 (minor support is at 0.6810). Resistance is at 0.6845 followed by 0.6860”.

Next 1-3 weeks: “NZD attempted to break above the major 0.6850/60 resistance again yesterday but only managed to touch a high of 0.6857 (high was 0.6859 on Monday). The subsequent swift sell-off from the high indicates that the recent upward pressure has eased. We noted in recent updates that only a break of 0.6850/60 would lead to a stronger recovery to 0.6890. The price action yesterday suggests that NZD is not ready for a stronger recovery and is more likely to continue to trade sideways for now, likely within a 0.6750/0.6860 range”.