NZD/USD: Might edge higher and test 0.5675 before levelling off – UOB Group

New Zealand Dollar (NZD) could edge higher and test 0.5675 before levelling off; any further advance is unlikely to reach 0.5695. In the longer run, weakness in NZD has stabilized; for the time being, it is likely to trade in a range between 0.5605 and 0.5695, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Weakness in NZD has stabilized

24-HOUR VIEW: "When NZD was at 0.5645 yesterday, we noted that 'upward momentum is starting to build, but it is not sufficient to indicate a sustained rise just yet'. However, we indicated that 'there is scope for NZD to test 0.5665, but a clear break above this level is unlikely'. We added that 'we do not expect the next resistance at 0.5695 to come under threat'. NZD subsequently rose to a high of 0.5669, and then eased off to close at 0.5655 (+0.14%). While upward momentum is continuing to build, it is still not sufficient to indicate a sustained advance. Today, NZD could edge higher and test 0.5675 before levelling off. Based on the current momentum, any further advance is unlikely to reach 0.5695. Support levels are at 0.5640 and 0.5630."

1-3 WEEKS VIEW: "Yesterday (11 Nov, spot at 0.5645), we revised our view from negative to neutral. We indicated that 'the weakness in NZD has stabilized, and for the time being, it is likely to trade in a range between 0.5605 and 0.5695'. We continue to hold the same view."