Lee Sue Ann and Quek Ser Leang, FX Strategists at UOB Group, noted NZD/USD now looks poised for extra consolidation, likely within the 0.6715-0.6835 range.

Key Quotes

24-hour view: “NZD soared to a high of 0.6812 before pulling back sharply after NY close. The sharp and rapid pullback has room to extend to 0.6755. The next support at 0.6735 is unlikely to come under threat. Resistance is at 0.6795 followed by 0.6810.”

Next 1-3 weeks: “Our latest narrative was from Tuesday (19 Apr, spot at 0.6735) where ‘while downward momentum has not improved by much, there is scope for NZD to weaken further to 0.6700’. Yesterday (20 Apr), NZD rebounded strongly and took out our ‘strong resistance’ level at 0.6795. The breach of the ‘strong resistance’ indicates that downward pressure has eased. The current movement is viewed as part of a consolidation phase and NZD is likely to trade within a range of 0.6715/0.6835 for now.”