New Zealand Greenback (NZD) is prone to consolidate in a spread of 0.5935/0.5975 towards US Greenback (USD). Within the longer run, NZD might proceed to weaken, however it could consolidate first earlier than heading decrease towards 0.5920, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
NZD might proceed to weaken
24-HOUR VIEW: “When NZD was at 0.5975 within the early Asian session yesterday, we identified that ‘downward momentum is growing, and NZD might check the assist at 0.5950.’ Nonetheless, we indicated that ‘a sustained break beneath 0.5950 seems unlikely.’ The anticipated decline exceeded our expectation as NZD dropped to a low of 0.5939 earlier than rebounding. The rebound in oversold situations means that as a substitute of constant to weaken, NZD is extra prone to consolidate as we speak, in all probability in a spread of 0.5935/0.5975.”
1-3 WEEKS VIEW: “We’ve held the identical view since early final week (08 Jul, spot at 0.6015), wherein we said that ‘the value motion signifies that additional NZD weak spot is probably going, and the extent to look at is 0.5950.’ Yesterday, NZD lastly breached 0.5950, because it dropped to a low of 0.5939. Whereas we proceed to anticipate NZD to weaken, it could consolidate first earlier than heading towards 0.5920. We’ll keep our unfavourable NZD view so long as it holds beneath 0.6005 (‘robust resistance’ stage beforehand at 0.6030).”
