NZD/USD faces extra range bound near term – UOB

In the view of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, NZD/USD is likely to trade within the 0.6140-0.6260 range in the next few weeks.

Key Quotes

24-hour view: “Our view for NZD to dip below 0.6180 yesterday was incorrect as it rebounded from 0.6184 to 0.6242 and then eased off. Despite the rebound, there is no significant increase in momentum and NZD is unlikely to advance much further. Today, NZD is more likely to trade between 0.6190 and 0.6250.”

Next 1-3 weeks: “On Monday (10 Apr, spot at 0.6250), we highlighted that ‘the underlying tone has softened somewhat and NZD is likely to edge lower’. After NZD dipped to 0.6185, we highlighted yesterday (12 Apr) that ‘downward momentum has increased and NZD is likely to weaken further but it remains to be seen if NZD could break and stay below 0.6140’. In NY trade, NZD popped to a high of 0.6242. While our ‘strong resistance’ level of 0.6260 is not breached, downward momentum has more or less fizzled out. In other words, instead of weakening further, NZD is more likely to trade in a range for now, expected to be between 0.6140 and 0.6260.”