NZD/USD: Expected to trade in a range – UOB Group

New Zealand Dollar (NZD) is expected to trade in a range against US Dollar (USD), most likely between 0.5975 and 0.6040. In the longer run, sharp but short-lived swings have resulted in a mixed outlook; NZD is likely to trade in a range of 0.5900/0.6090 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sharp but short-lived swings have resulted in a mixed outlook

24-HOUR VIEW: "While we expected NZD to 'rebound further' yesterday, we highlighted that 'overbought conditions suggest 0.6040 is likely out of reach.' However, NZD rose and touched 0.6040 before closing at 0.6007 (+0.52%). Conditions remain overbought, but this time around, given that upward momentum is slowing, we expect NZD to trade in a range, most likely between 0.5975 and 0.6040."

1-3 WEEKS VIEW: "We stated yesterday (24 Jun, spot at 0.5995) that the recent 'sharp but short-lived swings have resulted in a mixed outlook.' We were of the view that NZD 'is likely to trade in a range of 0.5900/0.6090 for now.' Our view remains unchanged.