New Zealand Dollar (NZD) has likely moved into a 0.6015/0.6055 consolidation phase. In the longer run, NZD could continue to rise; the next level to watch is 0.6080, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
NZD can continue to rise
24-HOUR VIEW: “Following the surge in NZD that reached a high of 0.6047 two days ago, we stated yesterday, when NZD was at 0.6040, that ‘the sharp rise appears excessive, but as long as NZD holds above 0.6015 (minor support is at 0.6030), it may test 0.6060 before leveling off.’ We were not wrong, as NZD rose to 0.6059 before easing to close at 0.6029 (-0.29%). NZD has likely moved into a consolidation phase. Today, we expect it to trade between 0.6015 and 0.6055.”
1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (24 Jul, spot at 0.6040). As pointed out, NZD ‘could continue to rise, and the next level to watch is 0.6080.’ We will maintain the same view provided that NZD holds above 0.5985 (no change in ‘strong support’ level).”
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