The Kiwi Dollar is expected to tarde within the broad 0.6350/0.6465 range vs. the greenback in the near term, suggested FX Strategists at UOB Group.
24-hour view: “After rocketing to 0.6422 yesterday, NZD consolidated and traded sideways. Upward momentum is still positive and there is scope for NZD to test 0.6435 first before a pull-back can be expected (next resistance at 0.6465 is not expected to come into the picture). Support is at 0.6395 followed by 0.6375”.
Next 1-3 weeks: “RBNZ kept its rates unchanged and NZD just surged above the 0.6400 “key resistance’ level. The price action suggests that the ‘downward phase’ that started on Monday (11 Nov, spot at 0.6340) ended abruptly and prematurely (we were expecting NZD to trade towards 0.6300). While it is too soon to expect a sustained rally, NZD could extend its gains in the coming days. That said, the early November peak near 0.6465 is acting as a solid resistance and this level is unlikely to yield so easily. To put it another way, we view the current movement as part of a broader sideway-trading range even though the immediate bias is for NZD to test the top of the expected 0.6350/0.6465 range”.