Momentum is turning neutral; the New Zealand Dollar (NZD) is expected to trade sideways between 0.6310 and 0.6365. In the longer run, there has been no further increase in momentum; it remains unclear if NZD could rise further to 0.6410, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Unclear if NZD can rise further to 0.6410

24-HOUR VIEW: “After NZD rose sharply last Friday, we indicated yesterday (Monday) that ‘the rapid rise seems to be overdone, but NZD could test the resistance at 0.6370 before the risk of a pullback increases.’ We also indicated that ‘a sustained break above 0.6370 is unlikely today.’ Our view was not wrong, even though NZD rose slightly more than expected to 0.6379 before pulling back. Momentum indicators are turning neutral, and we expect NZD to trade sideways today, probably between 0.6310 and 0.6365.”