Likely to decline further – UOB Group

The New Zealand Dollar (NZD) is likely to trade in a range between 0.6035 and 0.6090. In the longer run, NZD is likely to decline further; the level to watch is 0.6005, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Level to watch is 0.6005

24-HOUR VIEW: “NZD dropped sharply in early Asian trading yesterday. We indicated that “given the sharp increase in momentum, it is likely to decline further.” We also indicated that “the major support at 0.6005 is likely out of reach (there is another support at 0.6030).” Our view did not materialise as after dropping to 0.6041, it traded sideways for the rest of the sessions. Downward momentum has slowed, and NZD is unlikely to weaken much further. Today, it is more likely to trade in a range, probably between 0.6035 and 0.6090.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (16 Oct, spot at 0.6060). As highlighted, NZD is likely to decline further, and the level to watch is 0.6005. Overall, only a breach of 0.6115 (no change in ‘strong resistance’ level) would mean that the weakness in NZD that started early this month has stabilised.”