FX Strategists at UOB Group believes the pair is poised to navigate within the 0.7175/0.7330 range in the near term.
24-hour view: “NZD traded at a much narrower range than anticipated. The undertone still remains positive and we continue to see chance for a probe higher towards 0.7290. At this stage, any advance is viewed as part of a broader 0.7230/0.7290 consolidation and not the start of a sustained up-move”.
Next 1-3 weeks: “NZD extended its recovery after touching a low of 0.7176 last Thursday. The condition (of a NY closing below 0.7200) for a shift to a bearish phase is clearly not met. Downward momentum has eased with the rebound last Friday and while the outlook is still deemed as neutral, NZD has likely moved into a 0.7175/0.7330 consolidation range (likely to trade sideways for the next several days)”.