NZD/USD now looks to a probable drop to 0.6100 – UOB

In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, NZD/USD could slip back to the 0.6100 region in the next few weeks.

Key Quotes

24-hour view: “We expected NZD to ‘trade between 0.6145 and 0.6210’ yesterday. NZD subsequently traded within a lower range of 0.6132/0.6191. The price actions still appear to be part of a consolidation and we expect NZD to trade between 0.6125/0.6185 for today.”

Next 1-3 weeks: “There is no change in our view from yesterday (06 Jul, spot at 0.6175). As highlighted, despite the recent decline, downward momentum has not improved by much. That said, there is scope for NZD to weaken further to the next support at 0.6100. Only a break of 0.6230 (no change in in ‘strong resistance’ level was from yesterday) would indicate that the NZD weakness that started the middle of last week has ended.”