A chance for NZD to test 0.6115 – UOB Group

Provided that New Zealand Dollar (NZD) remains below 0.6185, there is a chance for it to test 0.6115. A sustained break below this level appears unlikely. In the longer run, A break of 0.6115 could lead to a deeper pullback towards 0.6085, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

A deeper pullback towards 0.6085 is possible

24-HOUR VIEW: “We expected NZD to break 0.6115 yesterday. Our expectation did not materialise, as NZD traded in a 0.6129/0.6164 range, closing largely unchanged (0.6150, +0.08%). Despite the relatively quiet price action, the underlying tone appears soft. Today, provided that NZD remains below 0.6185, there is a chance for NZD to test 0.6115 before a recovery can be expected. A sustained break below this level seems unlikely for now.”

1-3 WEEKS VIEW: “On Monday (09 Sep, spot at 0.6170), we indicated that ‘the corrective pullback in NZD could reach 0.6115.’ Yesterday (10 Sep, spot at 0.6140), we indicated that ‘a break of 0.6115 could lead to a deeper pullback towards 0.6085.’ We added, ‘to maintain the momentum, NZD must not break above 0.6205 (‘strong resistance’ level). Our view remains unchanged.”