NZD/USD: Likely to trade in a 0.5590/0.5705 range for now – UOB Group

Current price movements appear to be part of a range trading phase, expected to be between 0.5615 and 0.5665. In the longer run, NZD is likely to trade in a 0.5590/0.5705 range for now, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

NZD has probably entered a consolidation phase

24-HOUR VIEW: “NZD swung between 0.5612 and 0.5685 two days ago. Yesterday, we indicated that ‘the price action lacks clarity, and further choppy trading is not ruled out, probably in a range of 0.5605/0.5665.’ However, NZD rose to 0.5693 before pulling sharply to close at 0.5635 (- 0.15%). The current price movements appear to be part of a range trading phase, expected to be between 0.5615 and 0.5665.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (07 Jan, spot at 0.8640). As indicated, NZD has probably entered a consolidation phase, and it is likely to trade in a 0.5590/0.5705 range for now.”