New Zealand Greenback (NZD) might weaken additional towards US Greenback (USD), however it’s unlikely to achieve 0.5970; be aware that there’s one other help degree at 0.5995. Within the longer run, upward stress has light; NZD is more likely to commerce in a spread of 0.5970/0.6080 for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Upward stress has light
24-HOUR VIEW: “When NZD was at 0.6035 yesterday, we held the view that it ‘is more likely to commerce in a sideways vary of 0.6015/0.6055.’ We underestimated the volatility as after dipping to 0.6008, NZD soared to 0.6071. NZD closed 0.70% greater at 0.6069 in NY, however it fell sharply in early Asian commerce right now. The speedy enhance in downward momentum suggests NZD might weaken additional, though it’s unlikely to achieve the foremost help at 0.5970. Observe that there’s one other help degree at 0.5995. On the upside, resistance ranges are at 0.6050 and 0.6070.”
1-3 WEEKS VIEW: “We’ve got maintained the identical view since final Friday (06 Jun, spot at 0.6045), by which we indicated that ‘upward momentum stays largely unchanged, however there’s a likelihood for NZD to check 0.6095.’ Yesterday, NZD dipped under our ‘sturdy help’ degree of 0.6010. Upward stress has light, and as a substitute of testing 0.6095, NZD is more likely to commerce in a spread of 0.5970/0.6080 for now.”
