Anna 
The New Zealand dollar (NZD) has stabilized following a period of gains, with market analysts from UOB Group foreseeing a sideways trading pattern in the near term. The NZD experienced an uptick, reaching a peak of 0.6013 on Tuesday and closing slightly higher at 0.6023 on Wednesday, reflecting a modest 0.25% increase from the previous day.
UOB Group analysts highlighted that while the NZD had reached the projected limit of 0.6055 before retracting, surpassing this threshold is crucial for further gains. They anticipate potential strengthening in the next 1-3 weeks if the NZD breaks above 0.6055, paving the way for a potential advance toward 0.6100. This optimistic outlook is contingent on the currency maintaining a position above the robust support level of 0.5920.
However, today’s market movement indicates a decrease in upward momentum, with predictions suggesting that the NZD is likely to trade within a narrow range of 0.5980 to 0.6045, rather than extending its climb.
In the broader market context, both the Australian dollar (AUD) and NZD have recently weakened. The NZD/USD pair hovers around 0.6000, reflecting a 0.30% drop from New York’s closing levels on Wednesday. The AUD/USD pair dipped below 0.6500 after relinquishing gains following positive job data.
These shifts in currency strength coincide with negative equity sentiment and lower US futures, placing regional markets under pressure. The Japanese yen has demonstrated strength against both AUD and NZD, with the USD/JPY pair declining to near 151.25. Meanwhile, other major currencies have maintained relative stability, and US Treasury yields have extended gains within a narrow band.
