NZD/USD: Upside momentum loses traction – UOB

In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, NZD/USD now looks poised to trade between 0.6100 and 0.6240 in the next weeks.

Key Quotes

24-hour view: “The sharp drop in NZD to a low of 0.6156 appears to be overdone. However, with no sign of stabilization just yet, NZD could dip below 0.6140. The major support at 0.6100 is unlikely to come under threat. On the upside, a break of 0.6210 (minor resistance is at 0.6190) would indicate that NZD is unlikely to weaken further.”

Next 1-3 weeks: “After reaching a high of 0.6289 last Thursday (24 Nov), NZD not only failed to hold on to its gains but also fell sharply by 1.38% yesterday (NY close of 0.6161). Upward momentum has fizzled out and NZD is likely to consolidate and trade between 0.6100 and 0.6240 for now.”