NZD/USD: Likely to trade in a 0.5940/0.6040 range for now – UOB Group
|The New Zealand Dollar (NZD) could trade in a choppy manner between 0.5965 and 0.6015. In the longer run, weakness in NZD from early last month has ended; it is likely to trade in a 0.5940/0.6040 range for now, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Weakness in NZD from early last month ends
24-HOUR VIEW: “Last Friday, we expected NZD to trade in a range between 0.5950 and 0.5990. NZD then traded in a 0.5960/0.5999 range. It closed at 0.5962 but rose above 0.6000 in early Sydney trade today. The volatile price action has resulted in a mixed outlook. Today, NZD could continue to trade in a choppy manner, probably between 0.5965 and 0.6015.”
1-3 WEEKS VIEW: “We turned negative in NZD early last month. As we tracked the decline, in our most recent narrative from last Wednesday (30 Oct, spot at 0.5970), we indicated that ‘There is still no clear increase in downward momentum and the chance of a sustained break below 0.5950 is not high.’ While NZD subsequently dropped below 0.5950, it rebounded quickly from 0.5940. In early Sydney trade today, it rose to 0.6010. Although our ‘strong resistance’ at 0.6010 has not been clearly breached, downward momentum appears to have faded. In other words, the weakness in NZD has ended. NZD has likely entered a range trading phase and is expected to trade between 0.5940 and 0.6040 for now.”
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.