According to Markets Strategist Quek Ser Leang and Economist Lee Sue Ann at UOB Group, NZD/USD faces further side-lined trading in the next weeks, likely within the 0.5570-0.5755 range.

Key Quotes

24-hour view: “We highlighted yesterday that NZD ‘could rise above 0.5725 but a sustained advance above this level still appears unlikely’. However, after rising to 0.5706, NZD dropped to a low of 0.5650. The current price movement is likely part of consolidation and NZD is likely to trade sideways between 0.5625 and 0.5695 for today.”

Next 1-3 weeks: “Our update from two days ago (18 Oct, spot at 0.5675) still stands. As highlighted, NZD appears to have moved into a consolidation phase and is likely to trade between 0.5570 and 0.5755 for the time being.”