NZD/USD is expected to move between 0.5740 and 0.5825, according to UOB Group analysts. The NZD traded between 0.5770 and 0.5792, closing slightly lower at 0.5771, a decrease of 0.22%. This predicted movement suggests a possible dip to 0.5760, but it’s unlikely that the main support at 0.5740 will be tested. Resistance levels are at 0.5785 and 0.5795, with the currency likely to stay within this range.

Market Insights From FXStreet

The FXStreet Insights Team, recognized for sharing expert market analysis, emphasizes these predictions and trends. They also offer additional content focused on current market movements and forecasts. A legal notice warns that the information provided carries risks and uncertainties. It is essential to research thoroughly before making any financial decisions, as the views expressed belong solely to the authors. The platform and contributors are not responsible for any errors or investment losses. In the weeks ahead, we expect the NZD/USD pair to remain stable, likely trading between 0.5740 and 0.5825. This indicates a period of low volatility, making strategies that benefit from the currency staying within a channel preferable. Therefore, we recommend against betting on a significant breakout in either direction.

Market Outlook For 2025

This outlook is supported by the economic situations in New Zealand and the United States at the end of 2025. In its last meeting of 2025, the Reserve Bank of New Zealand kept its Official Cash Rate unchanged, and Q4 inflation data was reported at 2.8%, within the RBNZ’s target range. This lack of pressure to change the rate is helping to stabilize the Kiwi dollar. The US Federal Reserve has also indicated a neutral stance, with the December 2025 jobs report showing steady, moderate growth. With neither central bank providing strong direction, the currency pair is likely to remain stable. The low implied volatility, currently around 9% for one-month options, supports the expectation of limited movement. For derivative traders, this environment is perfect for selling premium. We should consider strategies like an iron condor, which involves selling a call spread with a strike above the 0.5825 resistance and a put spread below the 0.5740 support. This strategy allows us to profit from time decay as long as the NZD/USD exchange rate stays within this established range. The main risk would be an unexpected economic shock, such as a surprise in the upcoming US CPI data, which could push the pair out of this channel. We need to closely monitor the key support and resistance levels. A decisive daily close outside the 0.5740-0.5825 range would indicate that this stable environment has changed. Create your live VT Markets account and start trading now.

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