NZD/USD stays consolidative near term – UOB

The Kiwi Dollar keeps the neutral stance for the time being and remains poised for extra consolidation in the next weeks.

Key Quotes

24-hour view: “NZD traded within a very tight 0.7211/0.7239 range yesterday before settling near the low by end of NY. While downward momentum is not strong, there is scope for NZD to move below last week’s 0.7190 low. At this stage, we do not expect the next support at 0.7150 to come into the picture. Resistance is at 0.7240 followed by 0.7260”.

Next 1-3 weeks: “There is not much to add as NZD dipped to a low of 0.7189 last Thursday (29 Mar) before rebounding quickly. As highlighted in recent updates, while the immediate bias is tilted to the downside, any weakness is viewed as part of a 0.7150/0.7305 consolidation range and not the start of a sustained decline. Only a clear break below 0.7150 would indicate that NZD is ready to embark on a sustained down move”.