24-hour view: The strong surge in NZD that sent it to a high of 0.6236 in NY trade came as a surprise (we were expecting it to trade sideways). The sharp and swift rise appears to be overdone and NZD is unlikely to advance much further. Today, NZD is more likely to trade in a range of 0.6150/0.6230.

Next 1-3 weeks: Yesterday (14 Jun, spot at 0.6155), we highlighted that “there is room for NZD to strengthen further even though it must break clearly above 0.6180 before further sustained advance is likely”. We added, “Looking ahead, 0.6230 is a solid resistance and NZD might find this level difficult to break”. We did not anticipate the manner in which NZD lifted off and surged to a high of 0.6236 in NY trade. NZD is likely to advance further. The next level to watch is 0.6265. On the downside, a breach of 0.6125 (‘strong support’ level was at 0.6100 yesterday) would indicate that the NZD strength that started early this week has run its course.