Further consolidation within the 0.5610-0.5810 range looks likely in NZD/USD in the short term, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

24-hour view: “Yesterday, we held the view that NZD ‘is likely to advance further but the chance of a break of the major resistance at 0.5810 is not high’. While NZD rose to a high 0.5805, it plummeted to 0.5664 in NY trade before rebounding quickly to end the day at 0.5746 (+0.24%). The rebound has gained some momentum and the bias for today is on the upside. However, a break of the major resistance at 0.5810 is unlikely. Support is at 0.5720, followed by 0.5680.”

Next 1-3 weeks: “Our update from Tuesday (04 Oct, spot at 0.5720) still stands. As highlighted, the recent weakness in NZD has stabilized. We view the current price movements as the early stages of a consolidation phase and we expect NZD to trade between 0.5610 and 0.5810 for now.”