The continuation of the upside bias could put NZD/USD en route to revisit the 0.6180 region in the near term according to Economist 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 likely to trade in a range of 0.6090/0.6140”. However, NZD rose to a high of 0.6153, fell to 0.6107 and then settled at 0.6124 (-0.11%). There is no clear increase in upward momentum, and we continue to expect NZD to trade in a range, likely between 0.6090 and 0.6140.

Next 1-3 weeks: We stated yesterday (12 Jun, spot at 0.6120) that “the risk of NZD breaking above 0.6140 has increased”. We added, “the next resistance is at 0.6180”. NZD then broke above 0.6140 and rose to a high of 0.6153. While upward momentum has not improved much, there is a chance for NZD to rise further to 0.6180. On the downside, a breach of 0.6060 (‘strong support’ level was at 0.6040 yesterday) would indicate that NZD is not advancing further.