NZD/USD: Outlook appears negative in the short term – UOB

The near-term outlook for NZD/USD remains negative, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: NZD traded in a range of 0.6046/0.6095 yesterday before closing slightly lower at 0.6052 (-0.20%). The price actions appear to be consolidative. Today, we expect NZD to trade between 0.6035/0.6085. 

Next 1-3 weeks:We turned negative in NZD about a week ago. In our most recent narrative from Monday (07 Aug, spot at 0.6105), we indicated that “the likelihood of NZD weakening further has decreased.” On Tuesday, NZD dropped to a low of 0.6035. Downward pressure has increased, albeit not much. We will continue to hold a negative NZD view for now, as long as it stays below 0.6100 (‘strong resistance’ level previously at 0.6145). That said, it remains to be seen if there is enough momentum for NZD to break below 0.6020. Looking ahead, the next support is at 0.5985