According to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, further selling pressure could drag NZD/USD to the 0.6220 in the next few weeks.

Key Quotes

24-hour view: “Yesterday, we expected NZD to trade within a range of 0.6300/0.6365. However, NZD plummeted to 0.6253 before rebounding. Despite the rebound, the weakness does not appear to have stabilized. From here, as long as NZD stays below 0.6310 (minor resistance is at 0.6290), NZD could dip to 0.6240 before stabilization is likely. The major support at 0.6220 is not expected to come under threat today.”

“Our latest narrative was from two days ago (14 Feb, spot at 0.6360) where NZD is likely to consolidate and trade between 0.6270 and 0.6450. Yesterday, NZD cracked the solid support at 0.6270 and dropped to 0.6253. The rapid increase in downward momentum suggests NZD could drop further to 0.6220, possibly 0.6195. The downside risk is intact as long as NZD stays below the ‘strong resistance’ level, currently at 0.6345.”