NZD/USD: The short-term outlook looks to be unfavorable - UOB

According to UOB Group's Economist and Markets Strategist, the near-term prognosis for the NZD/USD remains bearish.

Important Quotes

Yesterday, the NZD moved in a range of 0.6046/0.6095 before settling slightly down at 0.6052 (-0.20%). Price movements appear to be consolidative. Today, we see NZD trading between 0.6035/0.6085. 

Next 1-3 weeks: About a week ago, we became negative in NZD. In our most recent Monday story (07 August, spot at 0.6105), we stated that "the likelihood of NZD weakening further has decreased." NZD fell to a low of 0.6035 on Tuesday. Although not much, downward pressure has grown. We will continue to retain a bearish NZD perspective for the time being, as long as it remains below 0.6100 (the previous strong resistance level of 0.6145). However, it remains to be seen if there is sufficient momentum for the NZD to breach below 0.6020. In the near future, the next level of support is at 0.5985.