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    UOB Group predicts the New Zealand Dollar may reach 0.5800, but a breakthrough seems unlikely

    by VT Markets
    /
    Oct 29, 2025

    Investment Information

    FXStreet shares insights from commercial and expert analysts. This information is for informational purposes only and should not be considered a recommendation to buy or sell assets. Always do thorough research before making any investment decisions. FXStreet does not guarantee the accuracy or completeness of its content. Investing comes with risks, including the potential for total loss. FXStreet and the author are not liable for any errors or losses that occur. They are not investment advisors, and their information is not meant as investment advice. Given the belief that NZD/USD will struggle to stay above 0.5800, traders might explore strategies that benefit from this resistance. Selling out-of-the-money call options with a strike price at or just above 0.5800 and with expirations in the next two to three weeks could be a sound strategy. This approach assumes the level will hold, allowing the options to expire without value. The upward pressure on the NZD/USD pair is influenced by differing central bank outlooks. New Zealand’s Q3 2025 inflation data showed 3.8%, keeping the Reserve Bank of New Zealand on hold. Meanwhile, the US Federal Reserve may soon implement a “cautious” rate cut. This difference in policy has been a key factor in NZD strength against the USD recently.

    Historical Context

    Looking back to mid-2024, the 0.5800 level was a crucial pivot point, providing both support and resistance. The current test of this level is important; however, with global risk sentiment still fragile, a breakout appears unlikely without a stronger trigger. The key support level at 0.5740 is critical; falling below it would negate the current bullish sentiment. For those expecting a “bull trap,” where the price briefly rises above 0.5800 before dropping, buying short-term put options might be a smart move. This strategy would take advantage of a quick rejection from that resistance. Currently, the implied volatility for NZD/USD options is relatively low, making these strategies more affordable. Create your live VT Markets account and start trading now.

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