There’s scope for New Zealand Greenback (NZD) to rebound additional; overbought circumstances recommend 0.6040 is probably going out of attain. Within the longer run, sharp however short-lived swings have resulted in a blended outlook; NZD is prone to commerce in a spread of 0.5900/0.6090 for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Quick-lived swings have resulted in a blended outlook
24-HOUR VIEW: “Yesterday, we anticipated NZD to ‘commerce in a spread of 0.5925/0.5985.’ We didn’t count on the following volatility as NZD first dropped to a low of 0.5884, then rebounded strongly to shut at 0.5976 (+0.16%). Though there’s scope for NZD to rebound additional, overbought circumstances recommend any advance is unlikely to achieve 0.6040. On the draw back, any pullback is prone to maintain above 0.5935, with minor help at 0.5965.”
1-3 WEEKS VIEW: “Final Friday (20 Jun, spot at 0.5995), we highlighted that ‘whereas there was a rise in downward momentum, it isn’t sufficient to recommend a sustained drop.’ We additionally highlighted that NZD ‘should break and maintain beneath 0.5940 earlier than additional declines are seemingly.’ Though NZD dropped to a low of 0.5884 yesterday, it rebounded strongly to shut 0.5976. Downward momentum has largely light with the robust rebound. The sharp however short-lived swings have resulted in a blended outlook. In the interim, NZD might commerce in vary between 0.5900 and 0.6090.”
