New Zealand Dollar (NZD) is likely to trade in a 0.5605/0.5680 range. In the longer run, current price movements are likely part of a 0.5510/0.5705 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sight increase in upward momentum

24-HOUR VIEW: "Following Monday’s choppy price action, we indicated yesterday that 'the outlook is unclear after the sharp swings.' We expected NZD to 'trade in a range between 0.5570 and 0.5670.' NZD subsequently traded in a narrower range than expected (0.5583/0.5655). We continue to expect NZD to trade in a range today. However, there has been a slight increase in upward momentum, and this suggests a higher range of 0.5605/0.5680."

1-3 WEEKS VIEW: "There is not much to add to our update from yesterday (04 Feb, spot at 0.5625). As highlighted, “the current price movements appear to be part of a range trading phase, likely between 0.5510 and 0.5705.”