New Zealand Dollar (NZD) is likely to trade in a range between 0.5790 and 0.5840. In the longer run, rapid buildup in momentum continues to suggest NZD strength; the level to watch is 0.5870, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The level to watch is 0.5870
24-HOUR VIEW: “On Monday, NZD surged to a high of 0.5826. Yesterday (Tuesday), when NZD was at 0.5820, we indicated that ‘While further NZD strength is not ruled out, any advance is likely part of a higher 0.5785/0.5845 range. In other words, NZD is unlikely to break clearly above 0.5845 today.’ NZD then traded in a narrower range than expected (0.5798/0.5831), closing marginally lower by 0.02% at 0.5821. We continue to expect range trading today, probably between 0.5790 and 0.5840.”
1-3 WEEKS VIEW: “There is not much to add to our update from yesterday (18 Mar, spot at 0.5820). As highlighted, the recent ‘rapid buildup in momentum continues to suggest NZD strength, and the level to watch on the upside is 0.5870.’ We will continue to hold the same view as long as the ‘strong support’ at 0.5755 (level was at 0.5740 yesterday) is intact.”