NZD/USD is now seen navigating a consolidative range between 0.6270 and 0.6450 in the next few weeks, suggest Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that NZD ‘is under mild downward pressure and could edge lower but the odds of a break of the major support at 0.6270 are not high’. NZD dipped briefly to 0.6291 before rebounding strongly to a high of 0.6365 in NY trade. While there is room for NZD to advance today, it is unlikely to break 0.6400. Support is at 0.6340, a breach of 0.6320 would indicate that NZD is not advancing further.”

Next 1-3 weeks: “Our latest narrative was from last Friday (10 Feb, spot at 0.6330) where ‘unless NZD breaks below 0.6270 in the next 1-2 days, the chances of it declining further are slim’. In NY trade yesterday, NZD rebounded strongly to a high of 0.6365. While our ‘strong resistance’ at 0.6380 is not breached, downward momentum has more or less faded. In other words, NZD is unlikely to decline further. From here, NZD is more likely to consolidate and trade between 0.6270 and 0.6450.”