NZD/USD: Further weakness should not be ruled out – UOB

NZD/USD risks a probable decline in the near term, according to UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we expected NZD to trade sideways between 0.6215 and 0.6285. However, NZD dropped rapidly to 0.6195 and then rebounded quickly. Downward pressure has eased and the rebound has scope to extend. However, any advance is unlikely to rise above 0.6260 in a sustained manner (the major resistance at 0.6320 is not expected to come into view).”

Next 1-3 weeks: “We highlighted yesterday (10 Apr, spot at 0.6250) that ‘the underlying tone has softened somewhat and NZD is likely to edge lower’. However, we were of the view that ‘any decline is seen as part of a lower trading range of 0.6180/0.6320’. NZD dropped to 0.6195 in NY trade and then rebounded quickly. We continue to hold the same view for now.”