A chance for NZD to test 0.6115 – UOB Group

Provided the New Zealand dollar (NZD) stays below 0.6185, there is a chance it could test 0.6115. A sustained break below this level seems unlikely. In the longer term, a break of 0.6115 could lead to a deeper pullback towards 0.6085, note UOB Group FX analysts Quek Ser Leang and Peter Chia.

A deeper pullback towards 0.6085 is possible

24 HOURS: “We expected NZD to break above 0.6115 yesterday. Our expectations failed to materialize as NZD traded in a 0.6129/0.6164 range, closing largely unchanged (0.6150, +0.08%). Despite the relatively quiet price action, the underlying tone appears soft. Today, provided NZD remains below 0.6185, there is a chance that NZD may test 0.6115 before a recovery is expected. A sustained break below this level looks unlikely at the moment.”

WEEKS 1-3: “On Monday (09 Sep, point at 0.6170), we indicated that ‘corrective pullback in NZD could reach 0.6115’. Yesterday (September 10, at 0.6140), we indicated that “a break of 0.6115 could lead to a deeper pullback towards 0.6085.” I added, “in order to maintain the momentum, NZD must not go above 0.6205 (the “strong resistance” level). Our vision remains unchanged.”