NZD/USD might reach 0.6000 in the sort run – UOB Group

Upward momentum is building, but not significantly; New Zealand Dollar (NZD) could edge higher, but it is currently unclear if it can reach 0.6000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum is building, but not significantly

24-HOUR VIEW: "We highlighted yesterday that 'while the underlying tone has softened, this is likely to lead to NZD trading in a lower range of 0.5925/0.5955 rather than a sustained decline.' NZD subsequently dipped to 0.5914 before rising swiftly to a high of 0.5963. This time around, the firmer underlying tone suggests NZD is likely to trade in a higher range of 0.5930/0.5970 rather than a sustained advance."

1-3 WEEKS VIEW: "We highlighted last Friday (08 Aug, spot at 0.5960) that 'upward momentum is building, but not significantly.' We expected NZD to 'edge higher,' but we pointed out that 'it is currently unclear if it can reach 0.6000.' We will maintain our view as long as 0.5910 (no change in ‘strong support’ level) is not breached."