NZD/USD could accelerate the decline if 0.6440 is cleared in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We expected NZD to ‘trade sideways between 0.6490 and 0.6550’ yesterday. NZD subsequently rose to 0.6540 before staging a surprisingly sharp drop to 0.6465. The rapid decline appears to running ahead of itself and NZD is unlikely to weaken much further. For today, NZD is more likely to trade between 0.6460 and 0.6515.”

Next 1-3 weeks: “Yesterday (01 Jun, spot at 0.6530), we highlighted that the recent NZD strength has run its course and we held the view that NZD is likely to consolidate and trade within a range of 0.6440/0.6570. NZD subsequently dropped to a low of 0.6465 before closing on a soft note at 0.6485 (-0.47%). Downward momentum is beginning to build but NZD has to break below 0.6440 before a sustained decline is likely.”