NZD/USD should keep the consolidation theme unchanged between 0.6140 and 0.6285 for the time being, suggest Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that NZD could decline further to 0.6180 before stabilization is likely. We added, ‘the major support at 0.6140 is not expected to come under threat’. Our view was not wrong as NZD dropped to 0.6162 and then rebounded to close at 0.6182 (0.46%). The weakness in NZD appears to have stabilized. In other words, instead of declining further, NZD is more likely to trade in a range, expected to be between 0.6170/0.6215.”

Next 1-3 weeks: “Our update from yesterday (17 Apr, spot at 0.6210) is still valid. As highlighted, the recent choppy swings have resulted in a mixed outlook NZD could trade in a range of 0.6140/0.6285 for now.”