Forex News

UOB Group Predicts Downward Trend for NZD/USD Pair in Near Term

Published by
Nonhlanhla P Dube
  • According to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, the NZD/USD pair faces strong support at 0.6085, and it may experience further downside risk in the near term.
  • In the 24-hour view, the NZD/USD pair rebounded from a low of 0.6125 to a high of 0.6167, and it is expected to trade sideways with an expected range for the day at 0.6135/0.6190.
  • A decline in the NZD/USD pair could potentially impact trade relations between New Zealand and South Africa, as it is an essential currency pair in forex trading with a direct impact on the South African economy.

According to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, the NZD/USD pair faces a strong support at 0.6085. The pair has been facing downward pressure, and it remains to be seen if there is enough momentum for NZD to drop to the major support level.

In the 24-hour view, the NZD/USD pair has rebounded from a low of 0.6125 to a high of 0.6167. However, downward momentum has eased, and the pair is likely to trade sideways, with an expected range for the day at 0.6135/0.6190.

Looking ahead to the next 1-3 weeks, the NZD/USD pair is likely to continue trading with a downward bias. While downward momentum has not increased much, a break of 0.6200 would indicate that the current downward bias has eased. However, there is no change in the view that only a break of the strong resistance level would indicate that the downward bias has eased.

The NZD/USD pair is essential to South Africa as it is an important currency pair in forex trading, which has a direct impact on the South African economy. A decline in the value of the NZD/USD pair would mean that South African exports to New Zealand would become more expensive, which could impact trade relations between the two countries.

In conclusion, UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang believe that the NZD/USD pair faces further downside risk in the near term, with a strong support level at 0.6085. The pair is likely to trade with a downward bias, with only a break of the strong resistance level indicating a change in the current trend. As the NZD/USD pair is an important currency pair in forex trading, South Africa will be monitoring the pair’s movement closely and its potential impact on the economy.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube

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