New Zealand Greenback (NZD) may pull again towards US Greenback (USD), however any decline is prone to be a part of a decrease vary of 0.5925/0.5970. Within the longer run, weak point from early this month has come to an finish; NZD is prone to consolidate between 0.5905 and 0.6000, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Weak point from early this month has come to an finish
24-HOUR VIEW: “NZD fell to a low of 0.5907 final Thursday after which rebounded. On Friday, when NZD was at 0.5940, we indicated that ‘the rebound and slowing momentum means that, relatively than persevering with to weaken, NZD is extra prone to consolidate immediately, in all probability in a spread of 0.5920/0.5965.’ As an alternative of consolidating, NZD rose from 0.5932 to 0.5991 earlier than pulling again to shut at 0.5961 (+0.49%). Within the early Asian session, NZD pulled again additional. Whereas there’s room for the pullback to increase, any decline is prone to be a part of a decrease vary of 0.5925/0.5970.”
1-3 WEEKS VIEW: “Now we have been anticipating a weaker NZD since early this month. In our newest narrative from final Thursday (17 Jul, spot at 0.5935), we said that ‘the NZD weak point is unbroken.’ Nevertheless, we identified that ‘it stays to be seen if NZD has sufficient momentum to achieve June’s low, close to 0.5885.’ On Friday, NZD rose to a excessive of 0.5991, breaking above our ‘robust resistance’ stage of 0.5980. The breach of the ‘robust resistance’ signifies that the weak point in NZD has come to an finish. The present value actions are possible a part of a consolidation section between 0.5905 and 0.6000.”
