The New Zealand Dollar (NZD) must break clearly above 0.6035 before an advance to 0.6055 can be expected, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

Bulls to test 0.6035 in short term

24-HOUR VIEW: “After testing the resistance level at 0.6035 last Friday, NZD pulled back, closing at 0.5997 (-0.30%). Upward pressure has faded, and the current price action is likely part of a sideways trading phase, probably between 0.5980 and 0.6020.”

1-3 WEEKS VIEW: “We highlighted last Tuesday (06 Aug, spot at 0.5975) that ‘the recent price action continues to suggest NZD could recover, possibly towards 0.6035.’ Our view was not wrong as NZD rose to 0.6035 last Friday and then pulled back. While NZD could continue to rise, it must break clearly above 0.6035 before an advance to 0.6055 can be expected. The chance of NZD breaking clearly above 0.6035 is not high for now, but it will remain intact as long as 0.5960 (‘strong support’ level previously at 0.5890) is not breached.”