The outlook on the Kiwi Dollar stays fragile but a test of the 0.6300 area vs. the Greenback appears unlikely for the time being, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “While our expectation for 0.6342 to be a “short-term bottom” was not wrong as NZD traded well above this level (low of 0.6358), the anticipated advance to 0.6415 did not materialize (high of 0.6395). The underlying tone has weakened slightly and this could lead to NZD drifting lower. That said, a sustained drop below the Monday’s (26 Aug) low of 0.6342 still appears unlikely. Resistance is at 0.6385 but only a move above 0.6400 would indicate the current mild downward pressure has eased”.
Next 1-3 weeks: “While NZD surrendered some of its Monday’s rebound and closed lower by -0.40% in NY (0.6362), downward momentum still appears to be lackluster. We highlighted the waning momentum since last Monday (19 Aug, spot at 0.6430) even though we were of the view that “there is still chance for NZD to weaken to 0.6350”. The strong rebound from Monday’s 0.6342 low reinforces our current view wherein while “NZD is still weak”, the next support at “0.6300 could be out of reach”. However, confirmation of a short-term bottom is only upon a move above 0.6415 (‘key resistance’ previously at 0.6430). Until then, NZD could ‘hang around’ these lower for a few more days”.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD bulls remain on the sidelines amid escalating US-China trade war
AUD/USD edges lower on Thursday and stalls the previous day's sharp recovery from a multi-year low, triggered by Trump's decision for an immediate 90-day tariff pause for many countries and a substantial reduction in the reciprocal tariff to 10%.
USD/JPY struggles to find acceptance above 148.00; looks to US CPI for fresh impetus
USD/JPY attracts fresh sellers during the Asian session on Thursday and reverses a part of the previous day's goodish recovery gains from the YTD low. Hopes for a US-Japan trade deal and the divergent BoJ-Fed policy expectations underpin the JPY and exert some pressure on spot prices amid a modest USD downtick.
Gold drifts higher above $3,050 amid escalating US-China trade tensions
Gold price edges higher to around $3,080 during the early Asian session on Wednesday. The safe-haven demand amid escalating trade tensions between the United States and China provides some support to the precious metal.
Senate approves Paul Atkins as new SEC Chair
The Senate voted 52-44 on Wednesday to approve Paul Atkins as the new SEC Chair. The news could improve sentiment in the crypto market, considering Atkins has previously advocated for better crypto regulations and served as an advisor to crypto companies.
Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.