New Zealand Dollar (NZD) is likely to consolidate in a range of 0.6025/0.6085. In the longer run, upward momentum is increasing, but NZD must first close above 0.6095 before a move to 0.6135 can be expected, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Upward momentum is increasing
24-HOUR VIEW: “We did not expect the sharp rise in NZD that reached a high of 0.6088 (we were expecting range trading). NZD pulled back from the high to close at 0.6059. The pullback in overbought conditions suggests NZD is unlikely to rise further. Today, NZD is more likely to consolidate in a range of 0.6025/0.6085.”
1-3 WEEKS VIEW: “We highlighted last Friday (13 Jun, spot at 0.6025) that the recent ‘upward pressure has faded.’ We were of the view that NZD ‘is likely to trade in a range of 0.5970/0.6080 for now.’ Yesterday, NZD rose sharply to 0.6088. There has been an increase in momentum, but not sufficient to indicate the start of a sustained advance just yet. NZD must first close above 0.6095 before a move to 0.6135 can be expected. The likelihood of NZD closing above 0.6095 will remain intact as long as the ‘strong support’ level, currently at 0.6005, is not breached.”
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