NZD/USD: Extra upside likely above 0.6015 – UOB

Further gains in NZD/USD need to clear the 0.6015 level, suggest Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: Yesterday, NZD traded between 0.5944 and 0.5973, narrower than our expected range of 0.5930/0.5985. There is still no clear directional bias, and we continue to expect NZD to trade in a range, probably between 0.5940 and 0.5985. 

Next 1-3 weeks: Our update from yesterday (25 Sep, spot at 0.5955) is still valid. As highlighted, while upward momentum has improved slightly, NZD must break and stay above 0.6015 before a sustained advance is likely. The chance of NZD breaking clearly above 0.6015 will remain intact as long as it remains above the ‘strong support’ level, currently at 0.5905.