NZD can edge higher to 0.5880 – UOB Group

Provided that 0.5825 is not breached; the New Zealand Dollar (NZD) could edge higher to 0.5880. The next resistance at 0.5905 is unlikely to come under threat. In the longer run, the underlying tone has softened, but any decline is likely part of a lower trading range of 0.5815/0.5905, UOB Group’s FX analyst Quek Ser Leang and Lee Sue Ann notes.

The next resistance at 0.5905 is unlikely to come under threat

24-HOUR VIEW: “We indicated last Friday that NZD ‘is under mild downward pressure.’ We also indicated that it ‘is likely to edge lower, possibly testing 0.5835 before the risk of a rebound increases.’ We pointed out, ‘the next support at 0.5815 is unlikely to come under threat.’ Our view turned out to be correct, as NZD dropped to 0.5817 before rebounding. NZD closed at 0.5835 but opened higher today. From here, provided that 0.5825 is not breached, NZD could edge higher to 0.5880. This time around, the next resistance at 0.5905 is unlikely to come under threat.”

1-3 WEEKS VIEW: “Last Friday (22 Nov, spot at 0.5860), we highlighted that ‘While the underlying tone has softened, any decline is likely part of a lower trading range of 0.5815/0.5905.’ We added, ‘NZD is unlikely to break clearly below 0.5815.’ NZD subsequently dipped to 0.5817 and then rebounded. There has been no clear increase in either upward and downward momentum, and we continue to hold the same view for now.”