Scope for New Zealand Greenback (NZD) to rise additional, however any advance is probably going half of a better vary of 0.5885/0.5935. Within the longer run, slowdown in momentum signifies that the chances of NZD reaching 0.5845 are low, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Odds of NZD reaching 0.5845 are low
24-HOUR VIEW: “After dipping to a low of 0.5857 final Friday, NZD lifted off and rose, reaching a excessive of 0.5929. NZD eased from the excessive to shut at 0.5919 (+0.49%). Though there may be scope for NZD to rise additional in the present day, overbought situations point out that any advance is probably going half of a better vary of 0.5885/0.5935. In different phrases, NZD is unlikely to interrupt clearly above 0.5935.”
1-3 WEEKS VIEW: “In our newest narrative final Thursday (31 Jul, spot at 0.5905), we anticipated NZD to ‘decline additional to 0.5885, probably reaching 0.5845.’ We acknowledged that ‘the weak point is unbroken so long as NZD holds under the ‘robust resistance’ at 0.5960.’ After dropping to a low of 0.5857 on Friday, NZD then rose to a excessive of 0.5929. Whereas our ‘robust resistance’ stage at 0.5960 has not been breached but, the slowdown in momentum signifies that the chances of NZD reaching 0.5845 are low.”
