NZD/USD: Further rangebound seen between 0.5900/0.6100 – UOB

In opinion of FX Strategists at UOB Group, NZD/USD is expected to remain locked within the 0.5900/0.6100 in the next weeks.

Key Quotes

24-hour view: “The strong advance in NZD to a high of 0.6090 and the subsequent sharp sell-off came as a surprise. The rapid drop appears to be running ahead of itself but there is room for NZD to extend its decline to 0.5980. For today, the next support at 0.5960 is unlikely to come into the picture. On the upside, 0.6070 is expected to be strong enough to hold any intraday rebound (minor resistance is at 0.6065).”

Next 1-3 weeks: “Our view for further NZD weakness was proven wrong as it surged above our ‘strong resistance’ level of 0.6050 (high of 0.6090) before dropping back quickly. The price action suggests that NZD is likely trading in a consolidation phase. For the next week or so, NZD is expected to trade between the two major level of 0.5900 and 0.6100.”