NZD/USD to Range Trade Between 0.5900 and 0.5950, UOB Group Analysts Say

NZD/USD: To Range Trade in a 0.5900/0.5950 Range – UOB Group

UOB Group’s FX analysts, Quek Ser Leang and Peter Chia, forecast that the New Zealand Dollar (NZD) will continue to range trade within a 0.5900 to 0.5950 range against the US Dollar (USD) in the short term. Although recent price movements have shown some upward momentum, the analysts predict that NZD will remain within this narrow trading band for now, with no significant breakout expected in the immediate future.

In the 24-hour perspective, the analysts noted that yesterday’s market conditions saw NZD rising to 0.5932, surpassing expectations. However, despite the rally, there was no strong build-up of upward momentum. As a result, UOB analysts expect the NZD to trade within the 0.5900 to 0.5950 range today, with no major movements anticipated beyond this zone. They suggest that this range-bound trading will persist, reflecting a lack of decisive direction in the market.

Looking at the longer-term view (1-3 weeks), UOB Group’s outlook remains mixed for the NZD. The analysts previously predicted a range between 0.5835 and 0.6030, but this has since been adjusted to a tighter range of 0.5835 to 0.5985. The analysts highlight that the NZD is likely to trade within these boundaries due to a combination of factors, including mixed economic data and global market conditions, which have not provided a clear catalyst for a strong breakout in either direction.

Overall, the outlook for the NZD remains uncertain, with the currency likely to experience more range trading rather than a significant trend in the short and medium term.