NZD/USD: Likely to trade sideways between 0.5925 and 0.5965 – UOB Group

New Zealand Dollar (NZD) is likely to trade sideways between 0.5925 and 0.5965. In the longer run, price action indicates NZD is likely to continue to rise, but it remains to be seen if the major resistance at 0.5990 is within reach, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is likely to continue to rise

24-HOUR VIEW: "Yesterday, we expected NZD to 'consolidate between 0.5895 and 0.5945.' However, instead of consolidating, NZD rose to a high of 0.5964, then pulled back quickly to close at 0.5942 (+0.28%). There has been no clear increase in upward momentum, and NZD is unlikely to rise much further. Today, NZD is more likely to trade sideways between 0.5925 and 0.5965."

1-3 WEEKS VIEW: "We turned positive on NZD early this week. In our latest narrative from two days ago (09 Sep, spot at 0.5940), we indicated that 'the price action indicates NZD is likely to continue to rise, but it remains to be seen if there is sufficient momentum for it to reach the major resistance at 0.5990.' While NZD rose to a near-one-month high of 0.5964, upward momentum has not increased significantly. In other words, it is still unclear if 0.5990 is within reach. Overall, only a breach of 0.5895 (‘strong support’ level previously at 0.5880) would indicate that NZD is not rising further."