The price action continues to suggest a higher New Zealand Dollar (NZD); the levels to watch are 0.5800 and 0.5835, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Price action continues to suggest a higher NZD

24-HOUR VIEW: "Last Friday, NZD rose to a high of 0.5787. Yesterday, we highlighted the following: 'Despite advancing, NZD has not gained much momentum. That said, there is scope for NZD to test 0.5800 before the risk of a pullback increases'. The subsequent price movements did not quite turn out as expected. NZD rose to 0.5792, pulled back to 0.5760 and then recovered to close largely unchanged (0.5777, +0.03%). Momentum indicators are turning flat, and today, we expect NZD to consolidate, most likely between 0.5755 and 0.5785."

1-3 WEEKS VIEW: "We have expected a higher NZD since late last month (see annotations in the chart below). In our most recent narrative from last Thursday (05 Dec, spot at 0.5760), we stated that “the price action continues to suggest a higher NZD.” We pointed out that “the levels to watch are 0.5800 and 0.5835.” We will maintain the same view as long as 0.5735 (no change in ‘strong support’ level) is not breached."