NZD/USD might test the significant resistance level at 0.6030 – UOB Group

Above 0.6000, New Zealand Dollar (NZD) has a chance to test of the significant resistance level at 0.6030, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum has faded

24-HOUR VIEW: "Last Friday, we were of the view that NZD 'is likely to trade between 0.5940 and 0.6000.' NZD then traded in a narrower range than expected (0.5948/0.5988), closing largely unchanged at 0.5971 (+0.06%). Despite the quiet price action, there has been a slight increase in upward momentum, and this could lead to NZD edging higher to 0.6000 today. A clear break above this level seems unlikely. Support is at 0.5960; a breach of 0.5945 would indicate that the current mild upward pressure has ended."

1-3 WEEKS VIEW: "In our latest narrative from last Thursday (29 May, spot at 0.5950), we highlighted that the recent 'upward momentum has faded.' We also highlighted that NZD 'is likely to trade in a range between 0.5900 and 0.6000 for now.' Our view remains unchanged. Looking ahead, should NZD break and remain above 0.6000, it could trigger a test of the significant resistance level at 0.6030."