Scope for the New Zealand Dollar (NZD) to test 0.5920 before levelling off; the major resistance at 0.5950 is likely out of reach for now. In the longer run, for the time being, NZD is likely to trade in a range between 0.5840 and 0.5950, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The major resistance at 0.5950 is likely out of reach for now

24-HOUR VIEW: “The sharp rise in NZD that sent it to a high of 0.5908 was surprising (we were expecting 0.5810/0.5860 range trading). The rapid rise seems excessive, but there is scope for NZD to test 0.5920 before levelling off. The major resistance at 0.5950 is likely out of reach for now. Support levels are at 0.5880 and 0.5865.”

1-3 WEEKS VIEW: “We turned negative in NZD two days ago (26 Nov, spot at 0.5820), expecting it to weaken to 0.5770. However, after dropping to 0.5797, it rebounded strongly, and yesterday, it broke above our ‘strong resistance’ at 0.5875 (high has been 0.5908). The breach of the ‘strong resistance’ indicates that downward momentum has faded. The current price movements are likely part of a range trading phase. For the time being, NZD is likely to trade between 0.5840 and 0.5950.”