In opinion of FX Strategists at UOB Group, NZD/USD is expected to navigate between 0.6545 and 0.6685 in the next weeks.

Key Quotes

24-hour view: “We expected the ‘rapid decline in NZD to extend’ yesterday. However, NZD traded between 0.6602 and 0.6640 before settling on a firm note at 0.6635 (+0.29%). The improved underlying tone suggests NZD could drift higher but any advance is not expected to break the major resistance at 0.6685 (there is another resistance at 0.6660). On the downside, a breach of 0.6605 (minor support is at 0.6620) would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “There is no change in our view from yesterday (07 Feb, spot at 0.6605). As highlighted, the current movement is viewed as part of a consolidation phase and NZD is likely to trade between 0.6545 and 0.6685 for now.”