Although deeply oversold, New Zealand Dollar (NZD) could decline further, but 0.5590 is likely out of reach for now. In the longer run, NZD could weaken further; the level to monitor is 0.5590, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
NZD can weaken further
24-HOUR VIEW: "After NZD fell to a low of 0.5689 on Wednesday, we indicated yesterday (Thursday) that it 'could decline further.' However, we noted that NZD 'does not seem to have enough momentum to break and remain below 0.5680.' However, NZD not only broke clearly below 0.5680 but also dropped further to 0.5630. Although deeply oversold, AUD could decline further. That said, the major support at 0.5590 is likely out of reach for now. On the upside, any recovery is likely to remain below 0.5665 (minor resistance is at 0.5645)."
1-3 WEEKS VIEW: "Yesterday (27 Feb, spot at 0.5700), we highlighted that 'downward momentum is beginning to build, and if NZD breaks and remains below 0.5680, it could trigger a decline to 0.5645.' We did not quite expect NZD to easily break below both 0.5680 and 0.5645. The price action suggests further NZD weakness, and the level to monitor is 0.5590. Overall, the downward pressure would remain intact as long as NZD does not break above 0.5685 (‘strong resistance’ level was at 0.5755 yesterday)."
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
EUR/USD holds positive ground above 1.0950 ahead of US CPI release
The EUR/USD pair attracts some buyers to around 1.0980 during the Asian session on Thursday. The Euro edges higher against the Greenback as German conservative leader agreed on a coalition deal with the center-left Social Democrats on Wednesday.
GBP/USD trades near 1.2850 after recovering recent losses, BoE's Breeden speech awaited
GBP/USD recovers its daily losses and continues its winning streak for the third successive session, hovering around 1.2850 during Asian trading hours on Thursday. The British Pound came under pressure following the release of weaker-than-expected data from the RICS Housing Price Balance.
Gold price rallies further beyond $3,100; eyes all-time high amid US-China tariff war
Gold price continues to attract safe-haven flows amid rising US-China trade tensions. Bets for multiple Fed rate cuts weigh on the USD and also benefit the precious metal. A solid recovery in the risk sentiment fails to undermine the safe-haven XAU/USD pair.
XRP back above $2 liquidating $18M in short positions, will the rally continue?
Ripple seeks support above $2.0020 on Thursday after gaining 14% in the past 24 hours. The token trades at $2.0007 at the time of writing, reflecting growing bullish sentiment across global markets.
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.