Likely to edge lower and test 0.5740 – UOB Group

New Zealand Dollar (NZD) could edge lower and test 0.5740; the major support at 0.5720 is unlikely to come into view for now. In the longer run, pullback in NZD has scope to extend, but any further decline is expected to face strong support at 0.5720, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Pullback in NZD has scope to extend

24-HOUR VIEW: “While NZD traded in a relatively quiet manner between 0.5752 and 0.5778 last Friday, downward momentum appears to have increased, albeit slightly. Today, NZD could edge lower and test 0.5740. The major support at 0.5720 is unlikely to come into view for now. On the upside, resistance levels are at 0.5770 and 0.5780.”

1-3 WEEKS VIEW: “NZD rose to 0.5831 in the middle of last month before easing. While it subsequently rose to a fresh high of 0.5853, it pulled back sharply from the high. The pullback has scope to extend but any further decline is expected to face strong support at 0.5720. To sustain the downward momentum, NZD must hold below the ‘strong resistance’ at 0.5800.”