NZD/USD: Likely to trade in a range between 0.5910 and 0.5950 – UOB Group

New Zealand Dollar (NZD) is likely to trade in a range between 0.5910 and 0.5950. In the longer run, NZD has likely entered a 0.5880/0.5980 consolidation phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

NZD has likely entered a consolidation phase

24-HOUR VIEW: "Last Thursday, NZD rose to a high of 0.5991 and then plummeted to a low of 0.5910. On Friday, when it was at 0.5920, we indicated that 'further declines are not ruled out, but given the oversold conditions, any weakness is likely part of a lower range of 0.5905/0.5950.' NZD subsequently traded between 0.5909 and 0.5939. Today, we continue to expect NZD to trade in a range, most likely between 0.5910 and 0.5950."

1-3 WEEKS VIEW: "We highlighted last Friday (15 Aug, spot at 0.5920) that NZD 'has likely entered a consolidation phase, expected to be between 0.5880 and 0.5980.' We continue to hold the same view."