Expected to trade in a range between 0.5625 and 0.5680 – UOB Group

New Zealand Dollar (NZD) is expected to trade in a range between 0.5625 and 0.5680. In the longer run, there has been a tentative buildup in momentum; NZD could rise gradually to 0.5725, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

NZD can rise gradually to 0.5725

24-HOUR VIEW: “We highlighted last Friday that ‘upward momentum has not increased much, but there is a chance for NZD to edge higher.’ However, we pointed out that it ‘is unlikely to be able to break above 0.5705.’ Our expectations did not materialise as NZD traded between 0.5643 and 0.5694, closing lower by 0.34% at 0.5656. The current price movements are likely part of a range trading phase. Today, we expect NZD to trade between 0.5625 and 0.5680.”

1-3 WEEKS VIEW: “We continue to hold the same view as last Thursday (06 Feb, spot at 0.5685), wherein ‘there has been a tentative buildup in momentum, and NZD could rise gradually to 0.5725.’ On the downside, if NZD breaks below 0.5615 (no change in ‘strong support’ level), it would mean that it is likely to trade in a range instead of edging higher.”