Instead of continuing to rise, New Zealand Dollar (NZD) is more likely to range trade between 0.5855 and 0.5915. In the longer run, for a continued rise, NZD must first close above 0.5930, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD/USD is more likely to range trade

24-HOUR VIEW: "Although NZD rose sharply to a high of 0.5917 last Friday, it eased from the high and closed at 0.5892. The rapid rise appears to be overstretched, and instead of continuing to rise, NZD is more likely to range trade today, probably between 0.5855 and 0.5915."

1-3 WEEKS VIEW: "In our latest update from last Wednesday (03 Sep, spot at 0.5855), we stated that 'we are adopting a neutral stance and expect NZD to trade in a range of 0.5800/0.5900.' Although NZD broke above the range on Friday and reached a high of 0.5917, the increase in upward momentum is not sufficient to indicate a sustained advance just yet. For a continued rise, NZD must first close above 0.5930. The odds of NZD closing above 0.5930 will remain intact as long as it holds above the ‘strong support’ level, which is now at 0.5840."