FX Strategists at UOB Group believe there is still scope for NZD/USD to slip back to the mid-0.6300s in the next weeks.

24-hour view: “Expectation for “further NZD weakness” did not materialize as NZD traded in a muted manner between 0.6404 and 0.6430. The quiet price action offers no fresh clues and NZD could continue to trade sideways, likely between 0.6400 and 0.6435”.

Next 1-3 weeks: “While the overall outlook for NZD still appears to be ‘soft’, it has not been able to make much headway on the downside as it failed to crack 0.6400 over the past two days (low of 0.6404 on both Monday and Tuesday). For now, we continue to hold the view that there is chance for NZD to weaken further to 0.6350. However, in view of the waning downward momentum, a break of 0.6470 (level previously at 0.6500) would indicate that the current downward pressure has eased. To look at it another way, a break of 0.6470 would suggest NZD could trade sideways for up to a few weeks”.