In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, NZD/USD could now set sail to the firm resistance around 0.6385 in the short term.

Key Quotes

24-hour view: The sudden surge in NZD that sent it rocketing to a high of 0.6308 came as a surprise (we were expecting NZD to trade in a range). The rapid rise appears to be overdone but there is room for NZD to test 0.6345. The major resistance at 0.6385 is highly unlikely to come under threat today. Support is at 0.6280, followed by 0.6255. 

Next 1-3 weeks: We have expected NZD to trade in a range since late last week. Yesterday (12 Jul), NZD took off and surged to a high of 0.6308. The price actions have shifted the risk for NZD to the upside, towards the major resistance at 0.6385. Overall, only a breach of the ‘strong support’ level, currently at 0.6230, would indicate the buildup in momentum has eased.