Following recent market activity in the NZD/USD, UOB Group FX Strategists forecast further stabilization between 0.6920 and 0.7050.
Observation for 24 hours: “While we expected the New Zealand dollar to strengthen yesterday, we believed it was unlikely to break the significant resistance level of 0.7030. NZD, on the other hand, soared to a high of 0.7043. The fast rise appears to have been excessive, and the New Zealand dollar is unlikely to appreciate any higher. NZD is expected to take a breather today, trading between 0.7000 and 0.7050.”
Within the next 1-3 weeks: “There isn’t much to add to yesterday’s update (14 Jul, spot at 0.6990). The recent dramatic but short-lived movements have resulted in a mixed outlook, with the NZD trading between 0.6920 and 0.7050 for the time being. A breach of 0.7050 would not be surprising after yesterday’s fast surge, but NZD must close above 0.7080 before a sustained advance can be envisaged.”/n
