NZD/USD: Expected to continue to trade sideways - UOB Group

New Zealand Dollar (NZD) is expected to continue to trade sideways, most likely in a range of 0.5925/0.5975. In the longer run, upward momentum has faded; NZD is likely to trade in a range between 0.5900 and 0.6000 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is likely to trade in a range between 0.5900 and 0.6000 for now

24-HOUR VIEW: "We stated yesterday that NZD 'could continue to trade sideways, but the softer underlying tone suggests a lower range of 0.5920/ 0.5980.' Our view of sideways trading was not wrong, even though NZD traded in a slightly narrower range than expected (0.5927/0.5980). The price action provides no fresh clues, and we continue to expect NZD to trade sideways, most likely in a range of 0.5925/0.5975."

1-3 WEEKS VIEW: "In our most recent narrative from Monday, 26 May, when NZD was at 0.5990, we noted that, 'While there has been an increase in momentum, it is not enough to indicate a sustained rise just yet.' We added, 'For a sustained advance, NZD must break and hold above the significant resistance at 0.6030.' On Tuesday, NZD fell to a low of 0.5941. Yesterday, Wednesday, we pointed out that "momentum is slowing rapidly, and the chance of NZD breaking decisively above 0.6030 is slim." NZD then traded sideways, and upward momentum has faded. For now, we expect NZD to trade in a range, probably between 0.5900 and 0.6000."