NZD/USD has likely moved into a 0.5770/0.5865 range – UOB Group

New Zealand Dollar (NZD) appears to have entered a sideways-trading phase and is likely to trade between 0.5790 and 0.5830. In the longer run, NZD has likely moved into a 0.5770/0.5865 range-trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD/USD appears to have entered a sideways-trading phase

24-HOUR VIEW: "NZD rose to a high of 0.5831 two days ago. Yesterday, when NZD was at 0.5820, we highlighted the following: 'Despite the relatively sharp advance, upward momentum has not increased significantly. That said, there is a chance for NZD to test 0.5840 before the risk of a pullback increases. We do not expect the major resistance at 0.5865 to come under threat.' Our assessments turned out to be correct, as NZD rose to 0.5843 and then pulled back to a low of 0.5803. NZD then closed largely unchanged at 0.5818 (+0.03%). NZD appears to have entered a sideways trading phase. Today, we expect it to trade between 0.5790 and 0.5830."

1-3 WEEKS VIEW: "There is not much to add to our update yesterday (02 Oct, spot at 0.5820). As highlighted, 'the price action suggests that NZD is likely to trade in a range for now, expected to be between 0.5770 and 0.5865'."