NZD/USD faces further side-lined trade – UOB

In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, NZD/USD should maintain the 0.6110-0.6245 range in the next few weeks.

Key Quotes

24-hour view: “NZD popped to a high of 0.6199 yesterday before easing off. Despite the advance, there is no significant increase in upward momentum and NZD is unlikely to rise much further. Today, NZD is more likely to trade sideways, expected to be between 0.6140 and 0.6195.”

Next 1-3 weeks: “In our most recent narrative from last Thursday (27 Apr, spot at 0.6115), we highlighted that the likelihood of NZD breaking below 0.6085 has increased but it has to remain below this level before further decline to 0.6035 is likely. However, did not break 0.6085 as it rebounded to a high of 0.6199 yesterday. The downward pressure that started more than a week ago has faded. NZD appears to have moved into a consolidation phase and it is likely to trade in a range of 0.6110/0.6245 for now.”