NZD/USD: Likely to trade sideways between 0.5690 and 0.5730 – UOB Group

New Zealand Dollar (NZD) is likely to trade sideways between 0.5690 and 0.5730. In the longer run, price action suggests further NZD strength, potentially to 0.5790, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Price action suggests further NZD strength

24-HOUR VIEW: "Our view for NZD to 'trade between 0.5710 and 0.5745' yesterday was incorrect as it dipped to a low of 0.5695. The drop lacks momentum, and instead of continuing to decline, NZD is more likely to trade sideways between 0.5690 and 0.5730 today."

1-3 WEEKS VIEW: "We turned positive in NZD on Monday (17 Feb, spot at 0.5730), indicating that 'the price action suggests further NZD strength, potentially to 0.5790.' While NZD subsequently rose to 0.5750, it has since eased off from the high. Momentum has slowed somewhat, but as long as 0.5675 (no change in ‘strong support’ level) is not breached, there is still scope for NZD to strengthen."