In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, NZD/USD is expected to remain side-lined in the 0.6425-0.6580 range for the time being.

Key Quotes

24-hour view: “We expected NZD to weaken yesterday but we were of the view that ‘the major support at 0.6425 is not expected to come under threat’. While NZD weakened as expected, it dropped to 0.6424 before rebounding strongly. Downward pressure has eased with the rebound and NZD is likely to trade sideways for today, expected to be between 0.6450 and 0.6510.”

Next 1-3 weeks: “Two days ago (06 Jun, spot at 0.6515), we highlighted that NZD is likely to trade sideways between 0.6425 and 0.6580. Yesterday (07 Jun), NZD dropped to 0.6424 before rebounding quickly. There is no change in our view for now and we continue to expect NZD to trade sideways between 0.6425 and 0.6580.”