NZDUSD: Rebound expected to test 0.6160 – UOB

The strong recovery in NZDUSD could see the 0.6160 level revisited in the near term, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘the rally in NZD is likely to extend even though a clear break of 0.6160 is unlikely’. However, NZD traded sideways within a range of 0.6067/0.6120. Further sideways trading would not be surprising, likely between 0.6060 and 0.6120.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (14 Nov, spot at 0.6105). As highlighted, the price actions from late last week appear to be a clear upside breakout and further NZD strength would not be surprising. Overall, only a break of 0.6000 (no change in ‘strong support’ level from yesterday) would indicate that NZD is not ready to rise to 0.6160. Looking ahead, the next resistance is at 0.6200.”