NZD/USD risks further downside near term – UOB

In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, NZD/USD faces a strong support at 0.6085.

Key Quotes

24-hour view: “Our view for NZD to edge lower did not materialize as it rebounded from a low of 0.6125 (high of 0.6167). Downward momentum has eased and NZD is likely to trade sideways. Expected range for today; 0.6135/0.6190.”

Next 1-3 weeks: “Yesterday (24 Apr, spot at 0.6140), we indicated ‘While downward momentum has not increased much, NZD is likely to trade with a downward bias’. We added, ‘It remains to be seen if there is enough momentum for NZD to drop to the major support at 0.6085’. There is no change in our view for now. Only a break of 0.6200 (no change in ‘strong resistance’ level) would indicate the current downward bias in NZD has eased.”