NZD/USD is on the downside – UOB Group

The risk for New Zealand Dollar (NZD) is on the downside vs US Dollar (USD), but any decline is likely part of a lower range of 0.5835/0.5900. In the longer run, the chance for NZD reaching 0.5835 has increased; the next level to watch is 0.5800, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Chance for NZD reaching 0.5835 has increased

24-HOUR VIEW: "Despite dropping sharply to 0.5847 yesterday, downward momentum has not increased significantly. However, the risk for NZD is on the downside, but any further decline is likely part of a lower range of 0.5835/0.5900. In other words, NZD is unlikely to break clearly below 0.5835."

1-3 WEEKS VIEW: "The following are the excerpts from our update last Friday (009 May, spot at 0.5900): 'There has been a slight increase in momentum, indicating the bias for NZD is tilted to the downside toward 0.5870, potentially reaching 0.5835. The downward bias will remain intact provided that the ‘strong resistance’ level, currently at 0.5960, is not breached.' Yesterday, Monday, NZD fell to 0.5847. Although downward momentum has not increased much further, the chance of NZD reaching 0.5835 has increased. The next level to watch is 0.5800. On the upside, a breach of 0.5940 (‘strong resistance’ level previously at 0.5960) would mean that NZD is not declining further."