NZD/USD: Likely to trade in a range between 0.5980 and 0.6080 – UOB Group

New Zealand Dollar (NZD) is likely to trade in a sideways range of 0.6000/0.6045 against US Dollar (USD). In the longer run, NZD is expected to trade in a range between 0.5980 and 0.6080, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is expected to trade in a range

24-HOUR VIEW: "NZD traded in a sideways range of 0.6012/0.6057 yesterday. While further sideways trading appears likely, the slightly softer underlying tone suggests a lower range of 0.6000/0.6045."

1-3 WEEKS VIEW: "After NZD rose to 0.6088, we highlighted the following two days ago (17 Jun, spot at 0.6055): 'There has been an increase in momentum, but not sufficient to indicate the start of a sustained advance just yet. NZD must first close above 0.6095 before a move to 0.6135 can be expected. The likelihood of NZD closing above 0.6095 will remain intact as long as the ‘strong support’ level, currently at 0.6005, is not breached.' NZD subsequently pulled back sharply to a low of 0.6011. Although our ‘strong support’ level is still intact, upward momentum has largely faded. From here, we expect NZD to trade in a range, most likely between 0.5980 and 0.6080."