NZD/USD could now advance to the 0.6180 region – UOB

The Kiwi dollar is seen appreciating further and lifting NZD/USD to the 0.6180 zone in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected NZD to strengthen yesterday but were of the view that ‘the month-to-date high at 0.6131 is likely out of reach’. However, NZD managed to edge a couple of pips above the month-to-high and touched 0.6133. Conditions remain overbought and for today, NZD is unlikely to strengthen much further. In other words, NZD is likely to take a break and consolidate at these higher levels. Expected range for today, 0.6080/0.6145.”

Next 1-3 weeks: “We highlighted yesterday that NZD ‘has to break the month-to-date high at 0.6131 before further sustained advance towards 0.6180 can be expected’. While NZD only edged two pips above 0.6131, the subsequent strong daily closing in NY (0.6132, +1.20%) suggests NZD could advance towards 0.6180 in the coming days. Only a breach of 0.6020 (no change in ‘strong support’ level) would indicate that the current upward pressure has eased.”