NZD/USD: Likely to range-trade between 0.5760 and 0.5805 – UOB Group
New Zealand Dollar (NZD) is likely to range-trade between 0.5760 and 0.5805. In the longer run, outlook for NZD has shifted to negative; the level to watch is 0.5690, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Outlook for NZD has shifted to negative
24-HOUR VIEW: "NZD plunged in the early Asian trade yesterday. When it was at 0.5750, we indicated that 'the sharp drop appears excessive, but there is scope for NZD to test 0.5720.' We added, 'the next support at 0.5690 is unlikely to come into view.' NZD did not test 0.5720, as it rebounded strongly from a low of 0.5738. The strong rebound from deeply oversold conditions suggests that instead of continuing to weaken, NZD is more likely to range-trade today, probably between 0.5760 and 0.5805."
1-3 WEEKS VIEW: "We highlighted yesterday (08 Oct, spot at 0.5750) that 'the outlook for NZD has shifted to negative, and the level to watch is 0.5690.' There is no change in our view even though deeply oversold short-term conditions could lead to a few days of consolidation first. Overall, only a breach of 0.5820 (no change in ‘strong resistance’ level) would indicate that the weakness in NZD has stabilised."
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FXStreet Insights Team
FXStreet
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