NZD/USD keeps the neutral perspective – UOB

NZD/USD is seen extending its sideline theme in the next 1-3 weeks, likely between 0.7240 and 0.7380.

Key Quotes

“The anticipated pull-back exceeded our expectation as NZD dropped sharply from a high of 0.7374 to a low of 0.7294 during NY hours. The decline appears to be over-extended but there is room for another down-leg towards the 0.7280 low seen on Wednesday”.

“The build-up in upward momentum fizzled out quickly as NZD dropped sharply after touching a high of 0.7374 yesterday. The expectation for the recent rebound to extend further to 0.7485 is premature and NZD has likely slipped back into a sideway trading range, likely between 0.7240 and 0.7380”.