New Zealand’s dollar may fall against its U.S. counterpart after descending from the top of its year-long contracting range, according to Bank of America Corp., citing technical analysis.
The currency, nicknamed the kiwi, had an “impulsive break” to 80.67 cents to the greenback that confirmed a top a turn lower, MacNeil Curry, head of foreign-exchange and interest-rates technical strategy in New York at Bank of America Merrill Lynch, wrote today in a research report. The kiwi will likely fall to 78.41 cents and may decline as low as 74.89 cents against the U.S. dollar.
New Zealand’s dollar “looks like it’s looking to carve out a top,” Curry said in a telephone interview. “Aussie and kiwi have been in this year-long contracting range,” he said, referring to the Australian dollar.
The kiwi depreciated 0.4 percent to 80.56 cents today in New York.
In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index.