The New Zealand Dollar (NZD) is likely to trade in a range between 0.6040 and 0.6080. In the longer run, NZD is likely to decline further; the level to watch is 0.6005, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notes.  

The level to watch is 0.6005

24-HOUR VIEW: “Yesterday, we expected NZD to trade in a range between 0.6035 and 0.6090.NZD then traded in a narrower range than expected (0.6045/0.6075). NZD closed largely unchanged at 0.6060 (-0.06%). Momentum indicators are mostly flat, and we continue to expect NZD to trade in a range, probably between 0.6040 and 0.6080.”

1-3 WEEKS VIEW: “We continue to hold the same view as two days ago (16 Oct, spot at 0.6060). As highlighted, NZD is likely to decline further, and the level to watch is 0.6005. Overall, only a breach of 0.6115 (no change in ‘strong resistance’ level) would mean that the weakness in NZD that started early this month has stabilised.”