The New Zealand Dollar (NZD) is expected to continue to trade in a range, albeit a lower one of 0.5955/0.5995. In the longer run, weakness in NZD from early last month has ended; it is likely to trade in a 0.5940/0.6040 range for now, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

May try to reach 0.6040

24-HOUR VIEW: “We expected NZD to trade in a choppy manner between 0.5865 and 0.6015 yesterday. NZD subsequently traded in a narrower range than expected (0.5973/0.6016). Further range trading appears likely, even though the slightly softened underlying tone suggest a lower range of 0.5955/0.5995.”

1-3 WEEKS VIEW: “We revised our NZD outlook from negative to neutral yesterday (04 Nov, spot at 0.5985), indicating that ‘the weakness in NZD from early last month has ended.’ We also indicated that NZD ‘has likely entered a range trading phase and is expected to trade between 0.5940 and 0.6040 for now.’ There is no change in our view.”