The New Zealand Dollar (NZD) is likely to remain range-bound between 0.5760 and 0.5805 in the short term, according to analysts Quek Ser Leang and Peter Chia from UOB Group. Despite recent volatility, the broader outlook for NZD has turned bearish, with 0.5690 identified as the key support level to monitor.
Short-Term View: Range Trading Expected
In their 24-hour outlook, UOB analysts noted that the NZD experienced a sharp drop during early Asian trading but quickly rebounded from a low of 0.5738, suggesting that the initial sell-off was overdone.
“The strong recovery from oversold conditions indicates that further weakness is unlikely for now. Instead, NZD/USD is expected to trade sideways between 0.5760 and 0.5805,” they said.
1–3 Week Outlook: Bearish Bias Intact
For the 1–3 week timeframe, UOB maintains a negative bias on NZD/USD, first highlighted when the pair was trading at 0.5750.
“The outlook has shifted to negative. While some short-term consolidation is possible, the focus remains on 0.5690 as a key downside target,” the analysts stated.
They added that only a break above 0.5820—the designated strong resistance level—would signal that the recent downward pressure has likely eased.