According to FX Strategists at UOB Group Quek Ser Leang and Peter Chia, further decline looks likely in NZD/USD in the near term.

Key Quotes

24-hour view: “NZD consolidated yesterday and closed little change at 0.6209 (+0.06%). Momentum indicators are mostly neutral and NZD is likely to continue to consolidate. Expected range for today, 0.6190/0.6245.”

Next 1-3 weeks: “Our latest narrative was from last Thursday (30 Jun, spot at 0.6220) where NZD could drop below 0.6200 but it has to close below this solid support before further sustained decline is likely. On Friday, NZD cracked 0.6200, plunged to 0.6150 before staging a strong rebound to close at 0.6205. While further NZD weakness is not ruled out, downward momentum is beginning to wane and the chance for NZD to break below 0.6150 is not high. On the upside, a breach of 0.6280 (no change in ‘strong resistance’ level) would indicate that NZD is unlikely to weaken further.”