Upside momentum in NZD seen running out of steam – UOB


In view of FX Strategists at UOB Group, the Kiwi Dollar could be losing some upside traction.

Key Quotes

24-hour view: “NZD traded between 0.6399 and 0.6450 yesterday, wider than our expected 0.6400/0.6440 range. The underlying tone has weakened and the risk for today is tilted to the downside. From here, barring a move above 0.6435, NZD is expected to decline to 0.6385. For today, the major 0.6365 support is likely out of reach”.

Next 1-3 weeks: “While NZD finally touched the 0.6450 level that was first indicated on Monday (09 Sep, spot at 0.6425) yesterday, it retreated quickly and ended the day just above the low. Upward momentum has waned considerably and the odds for further NZD strength above 0.6450 have diminished. However, only a break of 0.6365 (no change in strong support level) would indicate that the recovery that started last week has run its course”.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD crashes to new 2020 lows amid ECB dovishness, coronavirus fears

EUR/USD is trading below 1.1050, at the lowest since early December. ECB President Christine Lagarde refrained from acknowledging the recent economic improvement. Fears of the spread of the coronavirus are weighing on markets.

EUR/USD News

GBP/USD pressured toward 1.31 amid risk-off mood

GBP/USD is trading around 1.31, off the highs. Coronavirus headlines are sending traders to the safety of the US dollar. Speculation about the next BOE move is rife.

GBP/USD News

Top 3 Price Prediction Bitcoin, Ethereum, XRP: Set for a dive before the next big bull market

The first initiative comes from WhatsApp. Users of Facebook’s popular instant messaging application will be able to exchange Ether among themselves and other tokens that function over the ERC20 protocol.

Read more

Gold Bears challenge 100-period SMA support on 4-hourly chart

Gold failed to capitalize on the overnight intraday bounce and started retreating from the vicinity of a one-week-old ascending trend-channel support breakpoint.

Gold News

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures