NZD/USD has now likely moved into a consolidative phase, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “After NZD rose to 0.6304, we highlighted yesterday that ‘the rapid advance appears to be overdone and NZD is unlikely to strengthen much further’. We expected NZD to consolidate between 0.6255 and 0.6305. In line with our expectations, NZD consolidated, albeit in a narrower range of 0.6262/0.6291. The price actions offer no fresh clues and we continue to expect NZD to consolidate between 0.6255 and 0.6305.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (22 May, spot at 0.6285). As highlighted, NZD appears to have entered a consolidation phase and it is likely to trade between 0.6225 and 0.6335 for the time being.”