New Zealand Dollar (NZD) could test 0.6010 but it is unlikely to be able to break clearly above this level. In the longer run, there is a chance for NZD to rise to 0.6010; the likelihood of it reaching 0.6040 is not high for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Likelihood of reaching 0.6040 is not high for now

24-HOUR VIEW: "We noted yesterday that 'the underlying tone has firmed somewhat,' and we indicated that 'this is likely to lead to a higher range of 0.5955/0.5980 rather than a sustained rise.' NZD subsequently dipped to a low of 0.5960 and then rose to a high of 0.5992. There has been a slight increase in upward momentum. Today, NZD could edge higher and test 0.6010, but it is unlikely to be able to break clearly above this level. The next resistance at 0.6040 is unlikely to come under threat. Support levels are at 0.5970 and 0.5960."

1-3 WEEKS VIEW: "We turned positive on NZD early last week. In our most recent narrative from last Friday (12 Sep, spot at 0.5970), we highlighted that 'while there is a chance for NZD to rise above 0.5990, we believe the scope for further advance may be limited.' We added, 'looking ahead, the next level to watch above 0.5990 is 0.6010.' Although NZD rose to a high of 0.5992 yesterday, there has been no significant increase in upward momentum. However, there is a chance for NZD to rise to 0.6010. The likelihood of NZD reaching 0.6040 is not high for now. Overall, only a breach of 0.5940 (no change ‘strong support level) would indicate that NZD is not rising further."