NZD/USD: Likely to trade in a 0.5900/0.5950 range – UOB Group

New Zealand Dollar (NZD) is likely to trade in a 0.5900/0.5950 range vs US Dollar (USD). In the longer run, outlook remains mixed, but NZD is likely to trade in a tighter range of 0.5835/0.5985, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Outlook for NZD remains mixed

24-HOUR VIEW: "In the early Asian session yesterday, we noted that 'there has been a tentative buildup in upward momentum.' We expected NZD to 'edge higher and test 0.5920.' We highlighted that 'the major resistance at 0.5985 is unlikely to come into view.' We were not wrong, even though NZD rose more than expected to 0.5932. Despite the advance, there has been no significant increase in upward momentum. Today, we expect range trading, albeit likely in a higher range of 0.5900/0.5950."

1-3 WEEKS VIEW: "Last Wednesday (14 May, spot at 0.5935), we highlighted that 'the recent price movements have resulted in a mixed outlook', and we expected NZD to 'trade in a 0.5835/0.6030 range.' Yesterday (19 May, spot at 0.5890), we indicated that 'The outlook remains mixed, but we now expect a tighter range of 0.5835/0.5985.' We continue to hold the same view."