The New Zealand Dollar (NZD) is likely to trade in a range between 0.5760 and 0.5800. In the longer term, there is room for expansion in the New Zealand dollar’s decline, but any further decline is expected to face strong support at 0.5720, UOB Group FX analysts Kwek Ser Liang and Peter Chia noted.
The decline in the New Zealand dollar has room to expand
24-Hour View: “Yesterday we mentioned that the NZD “may decline and test 0.5740”. We noted that “key support is unlikely to emerge at 0.5720”. However, the NZD fell less than expected to 0.5745 before rebounding to close 0.37% higher at 0.5790. There was a slight increase in bullish momentum, but rather than continuing higher today, the NZD is likely to trade The New Zealand dollar is in a range between 0.5760 and 0.5800.”
1-3 week view: “We highlighted yesterday (05 Jan, spot at 0.5755) that the NZD’s rebound from last month’s high at 0.5853 ‘has room for expansion’. However, we were of the view that ‘any decline is expected to encounter strong support at 0.5720’. We will maintain the same view as long as 0.5800 (no change in ‘strong resistance’ level from yesterday) is not reached. “violate it.”
