Price action continues to suggest the New Zealand Dollar (NZD) could recover, possibly to 0.6035, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.

NZD can recover to 0.6035

24-HOUR VIEW: “We indicated yesterday that NZD ‘could rise, potentially reaching 0.6010.’ Our view did not turn out, as NZD traded in a range of 0.5912/0.5979, closing at 0.5954 (+0.25%). We continue to see room for NZD rise, even though any advance is unlikely to break clearly above 0.6010 (next resistance is at 0.6035). Support levels are at 0.5950 and 0.5935.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (06 Aug, spot at 0.5975). As highlighted, the recent price action continues to suggest NZD could recover, possibly towards 0.6035. Overall, only a breach of 0.5890 would indicate that NZD is not recovering further.”