In the view of Markets Strategist Quek Ser Leang and Senior Economist Alvin Liew at UOB Group, NZD/USD is expected to navigate between 0.6100 and 0.6245 in the next few weeks.

Key Quotes

24-hour view: After NZD dropped to 0.6135 and rebounded, we highlighted yesterday that “the rebound in oversold conditions suggests NZD is unlikely to weaken much further.” We expected NZD to trade sideways between 0.6135 and 0.6195. However, NZD rose to a high of 0.6217. Upward momentum has improved a tad and NZD could edge higher. In view of the mild upward momentum, NZD is unlikely to break clearly above 0.6245. Support is at 0.6185, followed by 0.6165.

Next 1-3 weeks: We continue to hold the same view as yesterday (21 Jun, spot at 0.6165). As noted, the outlook for NZD has turned neutral and it is likely to trade between 0.6100 and 0.6245. Looking ahead, if NZD breaks above the major resistance at 0.6265, the outlook will shift back to positive