The continuation of the upside bias could put NZD/USD en route to revisit the 0.6180 region in the near term according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
Key Quotes
24-hour view: Yesterday, we held the view that NZD “is likely to trade in a range of 0.6090/0.6140”. However, NZD rose to a high of 0.6153, fell to 0.6107 and then settled at 0.6124 (-0.11%). There is no clear increase in upward momentum, and we continue to expect NZD to trade in a range, likely between 0.6090 and 0.6140.
Next 1-3 weeks: We said yesterday (June 12, spot at 0.6120) that “the risk of a NZD break above 0.6140 has increased”. We added, “Next resistance at 0.6180”. NZD then broke above 0.6140 and rose to a high of 0.6153. Although the upside momentum has not improved much, there is scope for a further rally to 0.6180 for the NZD. On the downside, a breach of 0.6060 (the ‘strong support’ level was at 0.6040 yesterday) would indicate that the NZD is not advancing further.
