The likelihood that NZD/USD could retreat to the 0.6150 region in the short term appears to have dwindled according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we expected NZD to trade in a range of 0.6215/0.6260. However, NZD traded in a higher range of 0.6228/0.6273. There is no clear directional bias for now and today, we expect NZD to trade sideways between 0.6230 and 0.6280.”

Next 1-3 weeks: “Our latest narrative was from Monday (15 May, spot at 0.6295) wherein NZD could continue to decline, albeit likely at a slower pace. We indicated that the next level to watch is 0.6155. Since then, NZD has not been able to make any headway to the downside and as downward momentum is beginning to ease, the likelihood of NZD dropping to 0.6155 has decreased. However, only a break of 0.6280 (no change in ‘strong resistance’ level) would indicate that NZD is likely to trade sideways instead of declining further.”