Momentum indicators are mostly flat; the New Zealand Dollar (NZD) is expected to trade in a 0.5860/0.5900 range. In the longer run, for the time being, NZD is likely to trade in a range between 0.5840 and 0.5950, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.  

NZD to trade in a range between 0.5840 and 0.5950

24-HOUR VIEW: “We stated yesterday that NZD ‘is under mild downward pressure.’ While we expected it to edge lower, we were of the view that ‘any decline is unlikely to reach the major support at 0.5840.’ However, instead of edging lower, NZD traded quietly between 0.5865 and 0.5905. NZD closed modestly lower by 0.10% at 0.5882. Momentum indicators are mostly flat, and we expect NZD to trade in a 0.5860/0.5900 range today.”

1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (28 Nov, spot at 0.5895), wherein ‘the current price movements are likely part of a range trading phase.’ We expected NZD to “trade between 0.5840 and 0.5950.” There is no change in our view.”