Has to break above 0.6270 to test 0.6310 – UOB Group

The New Zealand Dollar (NZD) is expected to trade in a 0.6200/0.6270 range. In the longer run, NZD must break and remain above 0.6270 before an advance to 0.6310 can be expected, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

NZD trading in a 0.6200/0.6270 range for now

24-HOUR VIEW: “Our view for NZD to trade in a 0.6180/0.6230 range was incorrect. NZD dropped to 0.6183, soared to 0.6269, closing at 0.6242 (+0.55%). The price action has resulted in a mixed outlook. We continue to expect NZD to trade in a range, albeit a narrower one of 0.6200/0.6270.”

1-3 WEEKS VIEW: “In our most recent narrative from Tuesday (17 Sep, spot at 0.6185), we indicated that NZD is likely to trade in a 0.6135/0.6235 range for now. Yesterday, NZD rose and reached a high of 0.6269 before pulling back to close at 0.6242 (+0.55%). Upward momentum has increased, but not enough to suggest the start of a sustained advance. NZD must break and remain above 0.6270 before an advance to 0.6310 can be expected. The chance of NZD breaking clearly above 0.6270 will remain intact provided that the ‘strong support’ level at 0.6180 is not breached.”