NZD/USD: Likely to trade in a range of 0.5905/0.5940 – UOB Group

New Zealand Dollar (NZD) is likely to trade in a range of 0.5905/0.5940. In the longer run, NZD has likely entered a 0.5880/0.5980 consolidation phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is trading in a relatively quiet manner

24-HOUR VIEW: "We expected NZD to 'trade in a range between 0.5910 and 0.5950' yesterday. Our view of range trading was not wrong, even though NZD traded in a narrower range than expected (0.5911/0.5942). Further range trading seems likely, but the softer underlying tone suggests a lower range of 0.5905/0.5940."

1-3 WEEKS VIEW: "Last Friday (15 August, spot at 0.5920), we highlighted that NZD 'has likely entered a consolidation phase, expected to be between 0.5880 and 0.5980.' Since then, NZD has traded in a relatively quiet manner, and we continue to hold the same view for now."