Crawling towards 0.6320 resistance – UOB Group

The New Zealand Dollar (NZD) is expected to continue to advance; It remains to be seen whether the Ytd high of 0.6320 is within reach, note UOB Group analysts Quek Ser Leang and Lee Sue Ann.

NZD is targeting 0.6320

24-HOUR VIEW: “After the NZD rallied two days ago, I indicated yesterday that ‘despite the relatively sharp advance, the upside momentum hasn’t built much.’ We believed that “provided 0.6215 is not breached, NZD could test 0.6265 before the advance breaks”. Later, NZD rose to 0.6254, closing at 0.6246 (-0.11%). The underlying tone still looks firm and we continue to see a chance for the NZD to test 0.6265. Sustained growth above this level seems unlikely. Support levels are at 0.6235 and 0.6220.”

WEEKS 1-3: “Two days ago (August 26 at 0.6230) we highlighted that 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 at hand. There is no change in our view. On the downside, should the NZD break below 0.6180 (no change to the ‘strong support’ level), it would indicate that the NZD is not strengthening further.”