FX Strategists at UOB Group suggested NZD/USD could now by headed towards the 0.6150 region in the next weeks.
Key Quotes
24-hour view: “Our expectation for NZD to “drift lower towards the bottom of the expected 0.6025/0.6100 range first” did not materialize as it traded between 0.6060 and 0.6112. The underlying tone has firmed somewhat and this could lead to NZD edging higher towards 0.6125. For today, the next resistance at 0.6150 is unlikely to come into the picture. Support is at 0.6070 but the stronger level is at 0.6035.”
Next 1-3 weeks: “The sudden surge in NZD late last week came as a surprise as it blew past the top of our expected 0.5820/0.6020 range and hit a high of 0.6103 last Friday. While overbought short-term conditions could lead to a couple of days of consolidation first, NZD could continue to advance later on towards 0.6150. Only a break of 0.5975 would indicate that the current upward pressure has eased.”
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