In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, further gains in NZD/USD are likely once 0.5880 is cleared in the near term.

Key Quotes

24-hour view: “NZD traded within a range of 0.5785/0.5873 last Friday, close to our expected consolidation range of 0.5780/0.5875. Momentum indicators are mostly neutral and we continue to expect NZD to consolidate, likely within a range of 0.5775/0.5855.”

Next 1-3 weeks: “Our update from last Thursday (27 Oct, spot at 0.5835) still stands. As highlighted, NZD could rise but it has to close above 0.5880 before further sustained advance is likely. Overall, only a break of 0.5740 (no change in ‘strong support’ level from last Friday) would indicate that NZD is not ready to move above 0.5880.”