NZD/USD has now entered a phase of consolidation – UOB
According to UOB Group economist Lee Sue Ann and market strategist Quek Ser Leang, NZD/USD should currently trade in the short-term band of 0.5910-0.6040.
Key Phrases
24-hour perspective: Yesterday, we anticipated that the NZD will fluctuate between 0.5915 and 0.5965. Nevertheless, it increased to a high of 0.5984 before solidly finishing at 0.5980 (+0.55%). The NZD is anticipated to gain additional strength to 0.6000 as a result of the momentum’s quick development. It is not anticipated that the significant barrier at 0.6040 will be challenged today. Support can be found at 0.5950, then at 0.5930. This level provides strong help.
Within the next three weeks: Yesterday (23 August, spot price of 0.5945), we noted that “downward momentum has waned further, and the likelihood of further NZD weakness has diminished considerably.” Additionally, we noted that “only a break of 0.5985 would indicate that the weakness in NZD has stabilised.” NZD reached a high of 0.5984 in NY trade. Our 0.5985 “strong resistance” level has not yet been decisively broken, but the bearish momentum has largely subsided. NZD is anticipated to trade in a range between 0.5910 and 0.6040 for the time being as it appears to have entered a consolidation period.
