New Zealand Greenback (NZD) is more likely to consolidate in a variety of 0.6025/0.6085. Within the longer run, upward momentum is rising, however NZD should first shut above 0.6095 earlier than a transfer to 0.6135 will be anticipated, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Upward momentum is rising
24-HOUR VIEW: “We didn’t count on the sharp rise in NZD that reached a excessive of 0.6088 (we had been anticipating vary buying and selling). NZD pulled again from the excessive to shut at 0.6059. The pullback in overbought circumstances suggests NZD is unlikely to rise additional. Immediately, NZD is extra more likely to consolidate in a variety of 0.6025/0.6085.”
1-3 WEEKS VIEW: “We highlighted final Friday (13 Jun, spot at 0.6025) that the latest ‘upward strain has pale.’ We had been of the view that NZD ‘is more likely to commerce in a variety of 0.5970/0.6080 for now.’ Yesterday, NZD rose sharply to 0.6088. There was a rise in momentum, however not adequate to point the beginning of a sustained advance simply but. NZD should first shut above 0.6095 earlier than a transfer to 0.6135 will be anticipated. The probability of NZD closing above 0.6095 will stay intact so long as the ‘robust help’ degree, presently at 0.6005, isn’t breached.”
