NZD/USD outlook now neutral from bearish – UOB

FX Strategists at UOB Group have shifted their outlook to neutral from bearish on the Kiwi Dollar.

Key Quotes

24-hour view: “The ease of which NZD took out the 0.6885 resistance came as a surprise (overnight of 0.6894). The rally is over-extended and while a move towards 0.6920 is not ruled out, the odds for such a move are not high. NZD is more likely to consolidate its gains and trade sideways at these higher levels, likely between 0.6850 and 0.6905”.

Next 1-3 weeks: “The break of 0.6885 yesterday has shifted the recent bearish phase to neutral. NZD has likely made a short-term low at 0.6781 last week and the current movement is viewed as the early stages of a consolidation phase, likely between 0.6810 and 0.6935. That said, the immediate bias is for a move higher to test the top side of the expected consolidation range”.