FX Strategists at UOB Group suggested that NZD/USD now moved into a consolidative phase, likely between 0.6875 and 0.7000.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘momentum indicators have turned neutral and NZD is likely to consolidate within a range of 0.6910/0.6960’. NZD subsequently traded between 0.6917 and 0.6965. We continue to view the price actions as part of a consolidation. For today, NZD is likely to trade within a range of 0.6915/0.6965.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (11 Oct, spot at 0.6935). As highlighted, the recent downside risk has dissipated and NZD is likely to trade sideways within a 0.6875/0.7000 range for now.”