NZD/USD: Next support at 0.5690 is unlikely to come into view – UOB Group

Scope for New Zealand Dollar (NZD) to test 0.5720; the next support at 0.5690 is unlikely to come into view. In the longer run, outlook for NZD has shifted to negative; the level to watch is 0.5690, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD/USD is likely to test 0.5720

24-HOUR VIEW: "The following are excerpts from our update yesterday: 'There has been a slight increase in upward momentum, but this likely to lead to NZD trading in a higher range of 0.5810/0.5850 instead of a continued advance.' NZD then rose to a high of 0.5844 before dropping sharply to 0.5795. In the early Asian trade today, NZD plunged. The sharp drop appears excessive, but there is scope for NZD to test 0.5720. The next support at 0.5690 is unlikely to come into view. Resistance levels are at 0.5775 and 0.5800."

1-3 WEEKS VIEW: "Our most recent narrative was from last Thursday (02 Oct, spot at 0.5820) in which we stated that NZD “has likely moved into a 0.5770/0.5865 range-trading phase.” Yesterday, NZD fell to a low of 0.5795, closing on a soft note at 0.5799 (-0.77%). NZD continues to drop today. The sharp increase in momentum has shifted the NZD outlook to negative. The level to watch is 0.5690. We will maintain our view as long as 0.5820 holds."