In opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, the downside bias could drag NZD/USD to retest the 0.6700 area in the next weeks.

Key Quotes

24-hour view: “We expected NZD to ‘consolidate and trade sideways within a range of 0.6720/0.6765’ yesterday. Our view turned out to be correct as NZD traded between 0.6720 and 0.6764. Further sideway-trading would not be surprising even though the slighted firmed underlying tone suggests a higher range of 0.6725/0.6775.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (19 Apr, spot at 0.6735). As highlighted, while downward momentum has not improved by much, there is scope for NZD to weaken further to 0.6700. Looking ahead, the next support below 0.6700 is at 0.6675. The downside risk is deemed intact as long as NZD does not move above the ‘strong resistance’ at 0.6795 (no change in level from yesterday).”