Softer underlying tone is more likely to result in New Zealand Greenback (NZD) buying and selling in a decrease vary of 0.5925/0.5955. Within the longer run, upward momentum is constructing, however not considerably; NZD might edge larger, however it’s at present unclear if it could possibly attain 0.6000, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
NZD may edge larger, even in the direction of 0.6000
24-HOUR VIEW: “We anticipated NZD to ‘commerce in a spread of 0.5935/0.5965’ yesterday. Nonetheless, after rising to a excessive of 0.5959, NZD fell to a low of 0.5926 earlier than recovering to shut at 0.5939 (-0.26%). Whereas the underlying tone has softened, that is more likely to result in NZD buying and selling in a decrease vary of 0.5925/0.5955 moderately than of a sustained decline.”
1-3 WEEKS VIEW: “We highlighted final Friday (08 Aug, spot at 0.5960) that ‘upward momentum is constructing, however not considerably.’ We anticipated NZD to ‘edge larger,’ however we identified that ‘it’s at present unclear if it could possibly attain 0.6000.’ Though NZD has not been in a position to make any vital headway on the upside, we are going to keep our view so long as 0.5910 (no change in ‘sturdy help’ degree) will not be breached.”
