NZD/USD: Likely to trade in a range of 0.5940/0.5980 – UOB Group

New Zealand Dollar (NZD) is likely to trade in a range of 0.5940/0.5980 against US Dollar (USD). In the longer run, weakness from early this month has come to an end; NZD is likely to consolidate between 0.5905 and 0.6000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Weakness from early this month has come to an end

24-HOUR VIEW: "NZD rose to a high of 0.5991 last Friday and then pulled back. Yesterday, when NZD was at 0.5950, we were of the view that 'there is room for the pullback to extend, but any decline is likely to be part of a lower range of 0.5925/0.5970.' The subsequent price movements did not turn out as expected. NZD traded between 0.5939 and 0.5984 before settling at 0.5968 (+0.13%). The price action provides no fresh clues. Today, we expect NZD to trade in a range of 0.5940/0.5980."

1-3 WEEKS VIEW: "After holding a negative NZD view since early this month, we revised our outlook to neutral yesterday (21 Jul, spot at 0.5950). We indicated that 'the weakness from early this month has come to an end.' We added that NZD 'is likely to consolidate between 0.5905 and 0.6000.' There is no change in our view."