Outlook for Zealand Dollar (NZD) has shifted to negative; the level to watch is 0.5690, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The level to watch is 0.5690
24-HOUR VIEW: “Yesterday, we held the view that NZD ‘could test 0.5710.’ However, we pointed out that ‘given the oversold conditions, NZD is unlikely to reach the major support at 0.5690.’ The subsequent price movements did not turn out as we expected. NZD traded in a quiet manner between 0.5719 and 0.5745. Despite the quiet price action, the underlying tone appears to have softened, and we continue to expect NZD to test 0.5710. The major support at 0.5690 is still unlikely to come into view. On the upside, resistance levels are at 0.5740 and 0.5755.”
1-3 WEEKS VIEW: “In our most recent narrative from last Wednesday (08 Oct, spot at 0.5750), we indicated that ‘the outlook for NZD has shifted to negative, and the level to watch is 0.5690.’ We will continue to hold the same view as long as the ‘strong resistance’ at 0.5780 (no change in level from yesterday) continues to hold. Looking ahead, the next level to watch below 0.5690 is 0.5660.”
