In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, NZD/USD is expected to trade between 0.6425 and 0.6580 in the next weeks.

Key Quotes

24-hour view: “Yesterday, we highlighted that NZD ‘could dip below the strong support at 0.6500 but is unlikely to threaten the next support at 0.6455’. Our view was not wrong as NZD dropped to a low of 0.6485 during NY hours. Downward momentum is beginning to build and NZD could weaken from here. However, the major support at 0.6425 is not expected to come under threat (there is another support at 0.6460). Resistance is at 0.6505 followed by 0.6530.”

Next 1-3 weeks: “There is no change in our view from yesterday (06 Jun, spot at 0.6515). As highlighted, the recent build-up in upward momentum has fizzled out and NZD is likely to trade sideways between 0.6425 and 0.6580 for now.”