NZD/USD is forecast to trade between 0.6960 and 0.7105 within the next weeks, noted FX Strategists at UOB Group.
24-hour view: “While we expected NZD to strengthen yesterday, we were of the view that ‘the strong resistance at 0.7050 is unlikely to return under threat’. the next NZD strength exceeded our expectation by a good bit because it rose to 0.7069. The rapid rise appears to be running before itself but there’s room for the advance in NZD to check 0.7075 first before easing. subsequent resistance at 0.7105 isn’t expected to return into the image . On the downside, an opportunity of 0.7015 (minor support is at 0.7030) would indicate that the present upward pressure has eased.”
Next 1-3 weeks: “We highlighted yesterday (23 Jun, spot at 0.7015) that ‘downward momentum is starting to wane’ and ‘the odds for NZD to weaken to 0.6870 have diminished’. the next break of our ‘strong resistance’ level at 0.7050 (high has been 0.7069) indicates that the weak introduce NZD that started early last week has come to an end. the present movement is viewed because the early stages of a consolidation phase and NZD is probably going to trade between 0.6960 and 0.7105 for now.”