Rangebound between 0.6205 and 0.6255 – UOB Group

The New Zealand Dollar (NZD) is expected to trade in a range between 0.6205 and 0.6255. In the longer run, NZD must break and remain above 0.6270 before an advance to 0.6310 can be expected, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Above 0.6270 NZD can reach 0.6310

24-HOUR VIEW: “We expected NZD to trade in a 0.6200/0.6270 range last Friday. NZD subsequently traded in a narrower range between 0.6210 and 0.6258, closing at 0.6236 (-0.10%). The quiet price action provides no fresh clues, and we continue to expect NZD to trade in a range today, probably between 0.6205 and 0.6255.”

1-3 WEEKS VIEW: “After NZD rose to 0.6269, we indicated last Friday (20 Sep, spot at 0.6230) that NZD must break and remain above 0.6270 before an advance to 0.6310 can be expected. We also indicated that ‘the chance of NZD breaking clearly above 0.6270 will remain intact provided that the ‘strong support’ level at 0.6180 is not breached.’ We continue to hold the same view.”