24-hour view: We highlighted yesterday that “The price actions in NZD appear to be part of a consolidation phase”, and we expected it to trade in a range between 0.6075/0.6130. While our view of consolidation was correct, NZD traded in a narrower range than expected (0.6087/0.6115). The quiet price actions continue to suggest that NZD is likely to consolidate for now, probably in a range of 0.6080/0.6125. 

Next 1-3 weeks: NZD traded in a quiet manner and our update from yesterday (07 Aug, spot at 0.6105) still stands. As highlighted, the likelihood of NZD weakening further has decreased. However, only a breach of 0.6145 (no change in ‘strong resistance’ level) would mean that NZD is not weakening further.