NZDUSD: Further gains look likely above 0.6200 – UOB

In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, NZDUSD faces extra advances while above the 0.6200 level in the short-term horizon.

Key Quotes

24-hour view: “Yesterday, we expected NZD to consolidate between 0.6100 and 0.6180”. NZD subsequently traded within a range of 0.6129/0.6190 before closing at 0.6146 (-0.19%). We continue to expect NZD to consolidate even though the slightly weak underlying tone suggests a lower range of 0.6100/0.6180.”

Next 1-3 weeks: “After NZD soared to 0.6204 and pulled back, we highlighted yesterday (16 Nov, spot at 0.6135) that NZD has to move and stay above 0.6200 within these 1-2 days of the chance of further NZD strength will diminish quickly. There is no change in our view. On the downside, a breach of 0.6070 (no change in ‘strong support’ level from yesterday) would indicate that NZD is not ready to break clearly above 0.6200 (next resistance is at 0.6250).”