Ella 
24-hour view: Yesterday we expected the New Zealand dollar to consolidate in the range of 0.6130/0.6190. Contrary to consolidation, NZD surged to 0.6226. While the sharp rise seems overdone, NZD could test 0.6240 before pulling back. It is not expected to threaten the important resistance at 0.6285. Support is at 0.6185; if the New Zealand dollar falls below 0.6165, it indicates that the current upward pressure has eased.
The next 1-3 weeks: After the New Zealand dollar fell to 0.6121 last Friday and rebounded strongly, we pointed out yesterday that “although the risk of the New Zealand dollar is still on the downside, it must break through and maintain below 0.6120 before it may fall further. As long as it stays below 0.6220, Then there is still a chance that the New Zealand dollar will fall below this level significantly.” During the New York session, the New Zealand dollar soared and broke through 0.6220 (as high as 0.6226). The downward pressure has eased, and the New Zealand dollar will temporarily trade between 0.6135/0.6285.
