NZD/USD to see stability in 0.68-0.70 - ING

...but risks to the upside

ING FX Strategy Research discusses its NZD/USD outlook in the near-term, notes that the pair is still pricing in an RBNZ uncertainty premium.

"Acting RBNZ Governor Spencer will testify to the New Zealand parliament (Wed) this week...We already know that the RBNZ policy reaction function hasn't been materially thwarted, with a chance of a 2H18 rate hike still likely in an economy that has little slack left. However, inflation surprises in 1H18 hold the key to any RBNZ re-pricing story.

For now, we look for NZD to remain buffered by a soft USD environment and this could see stability in the 0.680.70 range (risks to the bullish side)," ING argues.

For bank trade ideas, check out eFX Plus.