NZD/USD could attempt a move to the 0.6480/0.6500 area in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted last Friday, “barring a move below 0.6390, NZD could advance further even though the major 0.6450 level is likely out of reach for today”. NZD subsequently dipped to 0.6404 before surging briefly above 0.6450 (high of 0.6456). The advance is running ahead of itself and further sustained NZD strength is not expected for today. NZD is more likely to consolidate its gains and trade sideways at these higher levels, expected to- be within a 0.6410/0.6450 range”.
Next 1-3 weeks: “We highlighted last Friday (01 Nov, spot at 0.6410) that “the odds for a break of the September’s peak of 0.6450 have increased”. NZD subsequently rose to 0.6456 before retreating quickly. While overbought shorter-term conditions could lead to 1 to 2 days of consolidation first, the outlook for NZD is still positive and a test of the strong 0.6480/0.6500 resistance would not be surprising. On the downside, only a break of 0.6390 (‘strong support’ level was at 0.6370) would suggest our view is wrong”.
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