NZD/USD: Set to reach 0.5915 near term – UOB Group

The New Zealand Dollar (NZD) is expected to trade in a range between 0.5945 and 0.5985. In the longer run, outlook is unclear; NZD could trade in a broad 0.5915/0.6045 range for now, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The next level to watch is 0.5915

24-HOUR VIEW: “After NZD fell sharply last Friday, we indicated yesterday that ‘The sharp decline has scope to extend to 0.5940 before stabilisation can be expected.’ We pointed out that NZD ‘is not expected to reach last week’s low, near 0.5915.’ Instead of declining further, NZD traded in a tight 0.5953/0.5977 range, closing largely unchanged at 0.5964 (-0.07%). Momentum indicators are turning flat, and NZD is expected to continue to trade in a range, probably between 0.5945 and 0.5985.”

1-3 WEEKS VIEW: “We highlighted yesterday (11 Nov, spot at 0.5965) that ‘The outlook is unclear after the sharp but short-lived swings.’ We were of the view that NZD ‘could trade in a broad range of 0.5915/0.6045 for now.’ We continue to hold the same view.”