According to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, NZD/USD could edge higher and revisit the 0.6310 level and above in the near term.

Key Quotes

24-hour view: “Yesterday, we expected further NZD strength towards 0.6310. However, NZD traded between 0.6230 and 0.6290. NZD is likely to consolidate today, expected to be between 0.6210 and 0.6270.”

Next 1-3 weeks: “Our update from yesterday (20 Mar, spot at 0.6270) is still valid. As highlighted, after the strong rise on last Friday, upward momentum has increased. The increase in momentum is likely to lead to further NZD strength to 0.6310, possibly 0.6360. That said, overbought short-term conditions could lead to a couple of days of consolidation first. Overall, only a breach of 0.6185 (no change in ‘strong support’ level) would indicate that NZD is not ready to head higher.”