NZD/USD is now seen navigating the 0.5740-0.5900 range in the next weeks, suggest Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “NZD spiked briefly to 0.5942 in NY trade before plunging to close at 0.5819 (-0.35%). NZD traded on a weak note in early Asian trade and the bias today is for NZD to weaken. That said, the major support at 0.5740 is unlikely to come under threat. Resistance is at 0.5840, followed by 0.5870.”

Next 1-3 weeks: “Our latest narrative was from last Thursday (27 Oct, spot at 0.5835) where NZD could rise but it has to close above 0.5880 before further sustained advance is likely. NZD did not close above 0.5880 and yesterday (02 Nov), it dropped to a low of 0.5815 before extending its decline in early Asian trade. Upward pressure has subsided and we expect NZD to trade between 0.5740 and 0.5900 for the time being.”