NZD/USD seen within 0.7005/0.7050 near term – UOB

FX Strategists at UOB Group remain bearish on the Kiwi Dollar, while they expect the pair to stay sidelined for the time being.

Key Quotes

24-hour view: “NZD traded sideways between 0.6996 and 0.7041 yesterday, relatively close to our expected 0.6990/0.7040 consolidation range. Indicators are mostly flat and the consolidation phase appears incomplete. In other words, we expect further range trading for now, albeit likely at a slightly higher range of 0.7005/0.7050”.

Next 1-3 weeks: “While the ‘stop-loss’ for our bearish view is still intact 0.7085 (high of 0.7052 last Friday), the combination of waning momentum and oversold condition continue to suggest an increasing risk of a short-term low. In order to revive the current flagging momentum, NZD has to stay below 0.7005 within these few days (or the risk of short-term low would increase further)”.