New Zealand Greenback (NZD) might stay risky in opposition to US Greenback (USD), however it’s prone to keep inside yesterday’s vary of 0.5914/0.5969. Within the longer run, NZD weak point is undamaged, nevertheless it stays to be seen if it has sufficient momentum to achieve June’s low, close to 0.5885, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
NZD weak point is undamaged
24-HOUR VIEW: “Two days in the past, we anticipated NZD to check the assist at 0.5950. After NZD subsequently dropped to a low of 0.5939 and rebounded, we said yesterday that ‘the rebound in oversold circumstances means that as a substitute of constant to weaken, NZD is extra prone to consolidate in a variety of 0.5935/0.5975.’ Our view of consolidation turned out to be incorrect, as NZD dropped to a low of 0.5914, spiked to 0.5969 earlier than dropping again down to shut largely unchanged (0.5946, +0.02%). The uneven worth motion has resulted in a blended outlook. Right this moment, NZD might stay risky, however it’s prone to stay inside yesterday’s vary of 0.5914/0.5969.”
1-3 WEEKS VIEW: “Yesterday (16 Jul, spot at 0.5955), we highlighted that ‘whereas we proceed to anticipate NZD to weaken, it could consolidate first earlier than heading towards 0.5920.’ We didn’t anticipate NZD to achieve 0.5920 so quickly, because it briefly dropped to a low of 0.5914. The weak point from early final week is undamaged, nevertheless it stays to be seen if NZD has sufficient momentum to achieve June’s low, close to 0.5885. Total, solely a breach of 0.5980 (‘sturdy resistance’ degree beforehand at 0.6005) would point out that NZD just isn’t weakening additional.”
