The New Zealand Dollar (NZD) is likely to trade in a range between 0.6045 and 0.6100. Buildup in downward momentum is not sufficiently enough to suggest a sustained decline; NZD has to break clearly below 0.6030 before further weakness can be expected, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Rangebound between 0.6045 and 0.6100

24-HOUR VIEW: “Yesterday, NZD traded between 0.6033 and 0.6097 vs our expected range of 0.6030/0.6090. The price action did not result in any increase in downward or upward momentum. Today, we continue to expect NZD to trade in a range, likely between 0.6045 and 0.6100.”

1-3 WEEKS VIEW: “Our update from yesterday (17 Jul, spot at 0.6070) is still valid. As highlighted, 'downward momentum is building, but not sufficiently enough to suggest the start of a sustained decline.' NZD has to break and stay below 0.6030 before further weakness can be expected. The likelihood of NZD breaking clearly below 0.6030 is not high for now, but it will remain intact as long as 0.6115 is not breached.”