NZD/USD: Expected to trade sideways between 0.5580 and 0.5630 – UOB Group

New Zealand Dollar (NZD) is expected to trade sideways between 0.5580 and 0.5630. In the longer run, NZD must break and remain above 0.5650 before a move to 0.5695 is likely, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Above 0.5650 NZD/USD can move to 0.5695

24-HOUR VIEW: "Yesterday, we expected NZD to 'trade in a sideways range of 0.5600/0.5650.' However, NZD traded in a lower range of 0.5582/0.5633, closing at 0.5608 (0.14%). The price action did not result in any increase in either downward or upward momentum. In other words, we continue to expect NZD to trade sideways, most likely between 0.5580 and 0.5630."

1-3 WEEKS VIEW: "We indicated yesterday (15 Jan, spot at 0.5620) that “although there has been a slight increase in momentum, NZD must break and remain above 0.5650 before a move to 0.5695 is likely.” There is no change in our view. The likelihood of NZD breaking clearly above 0.5650 will remain intact, provided that it remains above 0.5580 (‘strong support’ level)."