NZD/USD: Upward momentum is building – UOB Group

There appears to be sufficient momentum for New Zealand Dollar (NZD) to test 0.5980; a sustained rise above this level appears unlikely. In the longer run, upward momentum is building, but not significantly; NZD could edge higher, but it is currently unclear if it can reach 0.6000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sufficient momentum for NZD to test 0.5980

24-HOUR VIEW: "Although we expected NZD to 'advance further' yesterday, we indicated that it 'is unlikely to be able to reach 0.5960.' However, NZD rose and reached a high of 0.5967, before closing on a firm note at 0.5962. There appears to be sufficient momentum for NZD to test 0.5980 today, but a sustained rise above this level appears unlikely. The next resistance level at 0.6000 is also unlikely to come into view. Support levels are at 0.5945 and 0.5930."

1-3 WEEKS VIEW: "Our latest narrative was from two days ago (06 Aug, spot at 0.5910), in which we stated that NZD 'is expected to trade in a range between 0.5860 and 0.5960.' Yesterday, NZD rose above 0.5960, reaching a high of 0.5967. Upward momentum is building, but not significantly. From here, as long as NZD holds above 0.5910, we expect NZD to edge higher, but it is currently unclear if it can reach 0.6000."