NZD/USD: Weakness alleviated above 0.5950 – UOB

In opinion of FX Strategists at UOB Group, the downside pressure in NZD/USD is expected to lose momentum if 0.5950 is cleared.

Key Quotes

24-hour view: “We highlighted yesterday NZD ‘could edge higher but any advance is viewed as part of a 0.5670/0.5880 range for now’. While NZD subsequently moved higher, it only touched 0.5840 before drifting off. The short-term underlying tone still appears to be firm and from here, we see chance for NZD to test the 0.5880 level. At this stage, a sustained advance above this level is not expected. Support is at 0.5760 followed by 0.5720.”

Next 1-3 weeks: “After plunging to a low of 0.5469 last Thursday (19 Mar), NZD has not been able to make much headway on the downside. Technically, the sharp recent sharp sell-off is still intact and only a break above 0.5950 (no change in ‘strong resistance’ level) would indicate that the current weakness has stabilized.”