Further range trading is likely, probably between 0.5640 and 0.5685. In the longer run, New Zealand Dollar (NZD) is likely to continue to rise, potentially reaching the major resistance at 0.5750, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is likely to continue to rise

24-HOUR VIEW: "When NZD was trading at 0.5675 yesterday, we indicated that 'the current price movements are likely part of a range trading phase, probably between 0.5620 and 0.5690.' However, NZD traded in a narrower range of 0.5650/0.5687. Momentum indicators are turning flat, and further range trading is likely, probably between 0.5640 and 0.5685."

1-3 WEEKS VIEW: "Our update from two days ago (21 Jan, spot at 0.5680) remains valid. As highlighted, NZD 'is likely to continue to rise, potentially reaching the major resistance at 0.5750.' Although NZD has not advanced much further, only a break below 0.5620 (‘strong support’ level previously at 0.5600) will invalidate our view."