Needs to break above 0.6270 to test 0.6310 – UOB Group

The New Zealand Dollar (NZD) is expected to trade in the 0.6200/0.6270 range. In the longer term, the NZD needs to break and hold above 0.6270 before an advance to 0.6310 can be expected, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

NZD is trading in the 0.6200/0.6270 range at the moment

24 HOUR VIEW: “Our view of NZD trading in a 0.6180/0.6230 range was incorrect. NZD fell to 0.6183, rose to 0.6269, closing at 0.6242 (+0.55%). Price action led to a mixed outlook. We still expect NZD to trade in a range, albeit a narrower one, of 0.6200/0.6270.”

WEEKS 1-3: “In our most recent narrative on Tuesday (September 17, spot at 0.6185), we indicated that the NZD was likely to trade in a 0.6135/0.6235 range for now. Yesterday, NZD rose to a high of 0.6269 before retreating to close at 0.6242 (+0.55%). Upward momentum has picked up, but not enough to suggest the start of a sustained advance. NZD needs to break and hold above 0.6270 before an advance to 0.6310 can be expected. The chance of NZD breaking clear above 0.6270 will remain intact, provided the ‘strong support’ level at 0.6180 is not breached.”