NZD/USD: Likely to consolidate between 0.6050 and 0.6100 – UOB Group


The New Zealand Dollar (NZD) is likely to consolidate between 0.6050 and 0.6100. In the longer run, oversold weakness has not stabilised, but NZD must break clearly below 0.6050 before further sustained decline is likely, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

NZD must break below 0.6050 before a steady decline

24-HOUR VIEW: “Yesterday, we indicated that ‘tentative signs of slowing momentum combined with the still oversold conditions suggest NZD is likely to trade in a range.’ Our view of range trading was incorrect, as NZD plummeted to a low of 0.6053. The sharp and swift decline appears to be overdone. This, combined with tentative signs of slowing momentum, suggests NZD is unlikely to weaken much further. Today, NZD is more likely to consolidate between 0.6050 and 0.6100.”

1-3 WEEKS VIEW: “We turned negative in NZD last Wednesday (02 Oct, spot at 0.6285), indicating that ‘the pullback in NZD could potentially reach 0.6225.’ As NZD falls, we track the progress of the decline, and in our most recent narrative from Tuesday (08 Oct, spot at 0.6125), we indicated that NZD ‘still seems weak, but it remains to be seen if it has enough momentum to reach the next major support at 0.6075.’ Yesterday, NZD plummeted below 0.6075, reaching a low of 0.6053. While the weakness in NZD has not stabilised, conditions are severely oversold. To continue to decline in a sustained manner, NZD must break and remain below 0.6050. The probability of NZD breaking clearly below 0.6050 will remain intact as long as 0.6145 (‘strong resistance’ level previously at 0.6195) is not breached. Looking ahead, the next level to monitor below 0.6050 is 0.6005.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD drops below 1.0700 amid renewed US Dollar demand

EUR/USD drops below 1.0700 amid renewed US Dollar demand

EUR/USD drops below 1.0700 in European trading on Monday. The pair is weighed down by the German political risks and extended US Dollar strength, as traders brace for the key US inflation data later this week. US holiday-led thin trading is likely to extend. 

EUR/USD News
GBP/USD holds lower ground near 1.2900 amid firmer US Dollar

GBP/USD holds lower ground near 1.2900 amid firmer US Dollar

GBP/USD weakens to near 1.2900 in the European session on Monday. A broadly firmer US Dollar, following Donald Trump’s US election win, continues to weigh on the pair alongside resurfacing China's economic woes and pre-US inflation report market nervousness. 

GBP/USD News
Gold price languishes near daily low amid Trump optimism-inspired USD buying

Gold price languishes near daily low amid Trump optimism-inspired USD buying

Gold price drifts lower for the second straight day and is pressured by a combination of factors. The Trump trade optimism continues to underpin the USD and weighs on the precious metal. 

Gold News
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out

Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium

What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.

Read more
October’s US CPI rates to be the next big test for the greenback

October’s US CPI rates to be the next big test for the greenback

With the US elections being over, Trump getting elected and the Fed having released its interest rate decision, we take a look at what next week has in store for the markets. On the monetary front a number of policymakers from various central banks are scheduled to speak at some point or the other.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures