Outlook is mixed; New Zealand Dollar (NZD) is likely to trade in a 0.5675/0.5725 range vs US Dollar (USD). In the longer run, upward momentum has slowed; a breach of 0.5675 would indicate that 0.5790 is not coming into view, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Breach of 0.5675 to indicate that 0.5790 is not coming into view
24-HOUR VIEW: “We expected NZD to “trade sideways between 0.5690 and 0.5730” yesterday. Our view was incorrect as it fluctuated between 0.5678 and 0.5730, closing little changed (0.5705, +0.02%). The outlook is mixed after the choppy price movements. Today, we expect NZD to trade in a 0.5675/0.5725 range.”
1-3 WEEKS VIEW: “We turned positive in NZD on Monday (17 Feb, spot at 0.5730), indicating that “the price action suggests further NZD strength, potentially to 0.5790.” NZD then rose to 0.5750 but has not been able to build on its gains. Upward momentum has slowed, and a breach of 0.5675 (no change in ‘strong support’ level) would indicate 0.5790 is not coming into view. Note that NZD dropped briefly to 0.5678 yesterday.”
