NZD/USD is now seen navigating within 0.6230-0.6380 range in the next weeks, suggested Lee Sue Ann and Quek Ser Leang, FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, NZD dropped to 0.6229 before rebounding strongly to a high 0.6320. While there is scope for the rebound to extend, a sustained rise above 0.6350 is unlikely. Support is at 0.6295 followed by 0.6270.”

Next 1-3 weeks: “After NZD dropped to a low of 0.6219, we highlighted last Friday (13 May, spot at 0.6250) that downward momentum has not improved by much but NZD could weaken further but expect strong support at 0.6200. We did not quite expect the strong rebound yesterday that sent NZD to a high of 0.6320. The recent weak phase in NZD (see annotations in the chart below) has run its course and from here, NZD is likely to consolidate and trade between 0.6230 and 0.6380.”