The New Zealand Dollar (NZD) is showing modest upward momentum against the US Dollar (USD) and could attempt to test the 0.5770 resistance level, according to UOB Group analysts Quek Ser Leang and Peter Chia. However, they noted that a decisive break above this barrier appears unlikely in the near term.
In the broader outlook, the analysts maintain a neutral stance on the NZD/USD pair, expecting that the currency will continue to trade within a narrower range between 0.5700 and 0.5770 in the coming sessions.
Short-Term View (24 hours)
UOB highlighted that the NZD/USD closed largely unchanged at 0.5740 (-0.05%) two days ago. “Yesterday, we noted that while momentum indicators remain mostly flat, a softer underlying tone suggested a slightly lower trading range of 0.5725–0.5755,” the analysts said.
Their expectations were validated, as the pair moved between 0.5725 and 0.5754, ending just below the daily high at 0.5753 (+0.24%). The analysts now see slightly firmer upward momentum, which may prompt a test of the key resistance at 0.5770. Nonetheless, they emphasize that a clear breakout above this level remains unlikely for now.
Immediate support is located at 0.5735, with a move below 0.5725 signaling that the current mild upward pressure has dissipated.
Medium-Term View (1–3 weeks)
For the next few weeks, UOB continues to project a neutral outlook for the NZD. “We still expect NZD/USD to stay confined within the 0.5700–0.5770 range,” the analysts reiterated, adding that this bandwidth should be sufficient to contain near-term price movements.
