NZD/USD: Expected to trade in a range of 0.6055/0.6095 – UOB Group

New Zealand Dollar (NZD) is expected to trade in a range of 0.6055/0.6095 against US Dollar (USD). In the longer run, upward momentum has largely faded; NZD is likely to trade in a range between 0.6035 and 0.6130, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum has largely faded

24-HOUR VIEW: "We expected NZD to 'trade in a range between 0.6065 and 0.6115.' We did not expect the increase in volatility as NZD plummeted to 0.6031 and then snapped back up to close at 0.6069 (-0.32%). The choppy price action has resulted in a mixed outlook. Today, we expect NZD to trade in a range of 0.6055/0.6095."

1-3 WEEKS VIEW: "After holding a positive NZD view for about a week, we revised our outlook to neutral yesterday (03 Jul, spot at 0.6085). We indicated that 'upward momentum has largely faded”, and NZD “is likely to trade in a range between 0.6035 and 0.6130 for the time being.' During the NY session, NZD dipped briefly to 0.6031 before rebounding. As there is no sustained break below 0.6035, we will continue to expect NZD to trade in a range for now."