The New Zealand Dollar (NZD) is likely to fall to 0.5975 before stabilising. And overall, it is likely to trade between 0.5935 and 0.6080 for the time being, say UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
NZD could fall towards 0.5975
24-HOUR VIEW: “Our view that NZD would strengthen further yesterday was incorrect as it plunged to a low of 0.5995, closing sharply lower by 1.33% (0.5996). Although oversold, there is room for NZD to fall to 0.5975 before stabilisation is likely. The next support at 0.5935 is not expected to come into play. On the upside, any recovery will likely be held below 0.6040, with minor resistance at 0.6020.”
1-3 WEEK VIEW: “We turned positive on NZD earlier this month (as noted on the chart below). As we track the advance, in our update yesterday (14 August, spot at 0.6070), we were expecting further NZD strength but noted that there is a significant resistance level at 0.6120. NZD subsequently rose to 0.6084 and then sold off sharply to break below our ‘strong support’ level at 0.6005. Price action indicates that NZD strength has come to an end. For the time being, NZD is likely to trade range-bound, likely between 0.5935 and 0.6080.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
