Set to run towards 0.6320 – UOB Group

The New Zealand dollar (NZD) is likely to trade in a range between 0.6180 and 0.6225. In the longer term, the NZD is expected to continue to advance; Whether the Ytd high of 0.6320 is within reach remains to be seen, note UOB Group FX strategists Quek Ser Leang and Lee Sue Ann.

Bounded between 0.6180 and 0.6225

24 HOUR VIEW: Yesterday, we indicated that “further NZD strength is not out of the question, but severely overbought conditions suggest any advance is likely limited to a test of 0.6260.” However, instead of consolidating further, the NZD traded in a range between 0.6198 and 0.6233. A further trade looks likely today, probably between 0.6180 and 0.6225.”

WEEKS 1-3: “Not much has changed since our update yesterday (August 26, point at 0.6230). As pointed out, while we continue to expect the NZD to advance, conditions are severely overbought and it remains to be seen whether the year-to-date high of 0.6320 is within reach. Should the NZD break below 0.6140 (no change to the ‘strong support’ level) it would indicate that the NZD is not strengthening further.”