NZD/USD FACES FURTHER RANGE BOUND TRADING – UOB

According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, NZD/USD is now expected to trade within the 0.6240-0.6380 range in the next few weeks.

KEY QUOTES

24-hour view: “We expected NZD to ‘test 0.6380 first before easing’ yesterday. NZD subsequently rose to 0.6370 before dropping sharply to a low of 0.6292. The rapid decline appears to be running ahead of itself and NZD is unlikely to weaken much further. For today, NZD is likely to trade sideways between 0.6280 and 0.6330.”

Next 1-3 weeks: “We highlighted yesterday (18 May, spot at 0.6365) that NZD could rise to 0.6405. We did not expect the sharp decline as NZD dropped to 0.6292. The build-up in momentum fizzled out quickly and from here, NZD is likely to trade between 0.6240 and 0.6380.”