NZD/USD now faces some consolidation in the 0.6920-0.7030 band in the next weeks, noted FX Strategists at UOB Group.
24-hour view: “We expected NZD to ‘trade within a 0.6950/0.6990 range’ yesterday. NZD subsequently dipped to 0.6949 before staging a surprisingly robust advance (high of 0.7010 during NY session). Upward momentum has improved, albeit not by much. NZD could strengthen further but is unlikely to break the major resistance at 0.7030 (minor resistance is at 0.7015). Support is at 0.6980 followed by 0.6960.”
Next 1-3 weeks: “We continue to hold the same view from last Friday (23 Jul, spot at 0.6975) where NZD is likely trade within a 0.6920/0.7030 range for a period of time. While shorter-term upward momentum is beginning to improve, NZD has to close above 0.7030 before a sustained advance can be expected. The prospect for NZD to close above 0.7030 is not high but it would remain intact as long as NZD does not move below 0.6960 within these few days.”