The New Zealand Dollar (NZD) is advancing towards the 0.6055 resistance, UOB Group FX strategists Quek Ser Leang and Peter Chia note.
A test of 0.6055 is possible near term
24-HOUR VIEW: “NZD traded between 0.5991 and 0.6033 yesterday, higher than our expected sideways trading range of 0.5980/0.6020. NZD closed little changed at 0.6018 (+0.05%). Upward momentum has increased, albeit not much. Today, NZD could rise above 0.6035, but it might not be able to maintain a foothold above this level. The major resistance at 0.6055 is unlikely to come into view. Support is at 0.6010, followed by 0.5995.”
1-3 WEEKS VIEW: “We highlighted yesterday (12 Aug, spot at 0.6000) that ‘while NZD could continue to rise, it must break clearly above 0.6035 before an advance to 0.6055 can be expected.’ We also highlighted that ‘the chance of NZD breaking clearly above 0.6035 is not high for now, but it will remain intact as long as 0.5960 (‘strong support’ level previously at 0.5890) is not breached.’ There is no change in our view.”
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