NZD/USD: Likely to consolidate between 0.6040 and 0.6080 – UOB Group

New Zealand Dollar (NZD) is likely to consolidate between 0.6040 and 0.6080 against US Dollar (USD). In the longer run, NZD is likely to test the 0.6090 level; it is too early to determine if it can break clearly above this level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is likely to test the 0.6090 level

24-HOUR VIEW: "NZD climbed to a high of 0.6075 last Thursday before easing. When NZD was at 0.6060 on Friday, we highlighted that 'there is room for NZD to edge above 0.6075.' However, we were of the view that 'the major resistance at 0.6090 is likely out of reach.' NZD then edged to a high of 0.6077 before easing off to close at 0.6054 (-0.07%). NZD appears to have moved into a consolidation phase, likely between 0.6040 and 0.6080."

1-3 WEEKS VIEW: "In our most recent narrative from last Thursday (26 Jun, spot at 0.6055), we indicated that NZD 'is likely to test the 0.6090, but it is too early to determine if it can break clearly above this level.' While upward momentum has increased somewhat, it is still too early to determine if it can break above 0.6090. On the downside, should NZD break below 0.6000 (no change in ‘strong support’ level), it would indicate that 0.6090 is out of reach."