New Zealand Dollar (NZD) could continue to edge lower, but it is unlikely to be able to break below 0.5700. In the longer run, NZD is under mild downward pressure, and could edge lower, potentially testing 0.5700, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
NZD is under mild downward pressure
24-HOUR VIEW: "We expected NZD to 'edge lower and test 0.5720' last Friday. We added, 'a break of this level is not ruled out, but based on the current momentum, any further decline is unlikely to reach 0.5700'. We were not wrong, as NZD edged to a low of 0.5715 and then closed at 0.5723 (-0.34%). Today, NZD could continue to edge lower, but based on the current momentum, it is unlikely to be able to break below 0.5700. Resistance levels are at 0.5740 and 0.5750."
1-3 WEEKS VIEW: "Our update from last Friday (31 Oct, spot at 0.5740) remains valid. As highlighted, 'there has been a slight increase in downward momentum, and we expect NZD to edge lower, potentially testing 0.5700'. On the upside, a break of 0.5765 (‘strong resistance’ level was at 0.5790 last Friday) would indicate that the mild downward pressure has eased."
