As long as New Zealand Dollar (NZD) holds above 0.6015 against US Dollar (USD), it may test 0.6060 before leveling off. 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 is set to continue to rise
24-HOUR VIEW: “We did not expect NZD to soar to a high of 0.6047 (we were expecting consolidation). 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. Based on the current overbought momentum, any further advance is unlikely to reach 0.6080.
1-3 WEEKS VIEW: We pointed out yesterday (23 Jul, spot at 0.5990) that ‘upward momentum is increasing.’ However, we highlighted that NZD ‘must first close above 0.6010 before a move to 0.6040 can be expected.’ We did not expect NZD to quickly soar and surpass 0.6040 (high of 0.6047). NZD could continue to rise, and the next level to watch is 0.6080. On the downside, if NZD breaks below 0.5985, it would mean that it is not advancing further.”
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