In the view of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, NZD/USD is expected to navigate within the 0.6140-0.6280 range in the next few weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the decline lacks momentum and NZD is unlikely to weaken further’ and we expected NZD to trade sideways between 0.6185 and 0.6245. Our view of sideways trading was not wrong even though NZD traded in a narrower range than expected (0.6182/0.6217). The underlying tone appears to have firmed somewhat and today NZD is likely to edge higher. However, any advance is unlikely to break 0.6245. Support is at 0.6185, a break of 0.6160 would indicate that the current mild upward pressure has faded.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (27 Mar, spot at 0.6205) wherein NZD is likely to consolidate and trade in a range of 0.6140/0.6280 for now.”