NZD/USD must close above 0.5850 for further sustained rise – UOB Group

New Zealand Dollar (NZD) is likely to trade in a range between 0.5720 and 0.5850 vs US Dollar (USD). In the longer run, for further sustained rise, NZD must close above 0.5850, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Above 0.5850, NZD is set to rise further

24-HOUR VIEW: "We expected NZD to 'trade in a 0.5670/0.5770 range' yesterday. However, after dropping to a low of 0.5682, NZD surged to 0.5852 before pulling back to close at 0.5794 (+0.85%). The rapid rise appears to be overdone. Instead of continuing to rise, NZD is likely to trade in a range between 0.5720 and 0.5850 today."

1-3 WEEKS VIEW: "Yesterday (03 Apr, spot at 0.5735), we indicated that 'the current price movements are likely part of a range trading phase, expected to be between 0.5640 and 0.5800.' We did not expect NZD to break above 0.5800. The increase in momentum indicates NZD could continue to strengthen. However, for further sustained rise, it must close above 0.5850. Looking ahead, the next resistance is at 0.5890. The probability of NZD closing above 0.5860 will remain intact as long as 0.5680 (‘strong support’ level) is not breached."