The New Zealand dollar is likely to continue trading sideways in the near term, with momentum indicators showing little directional conviction. UOB Group FX strategists Quek Ser Leang and Peter Chia expect NZD/USD to hold within a 0.5595–0.5630 range, while the broader outlook still leans bearish.
Momentum Remains Flat as Consolidation Continues
24-Hour View:
UOB noted yesterday that recent movement appeared to be part of a consolidation phase, projecting a 0.5590–0.5625 range. The pair indeed traded narrowly between 0.5598 and 0.5618. With momentum indicators largely flat, the analysts maintain the view that NZD will continue consolidating today, likely within 0.5595–0.5630.
1–3 Weeks View:
Last Thursday (spot at 0.5610), UOB highlighted that strong downward momentum pointed toward a move to 0.5585, and potentially 0.5565. After the pair slipped to 0.5582, the bank reiterated on Friday that a break below 0.5565 could extend losses to 0.5540. While the pace of downside momentum has eased, the bearish outlook remains valid as long as 0.5640—the “strong resistance” level—holds.
