NZD/USD: Current price movements are likely part of a range – UOB Group
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New Zealand Dollar (NZD) is expected to trade in a 0.5670/0.5770 range vs US Dollar (USD). NZD rebounded two days ago and closed at 0.5701. In the longer run, current price movements are likely part of a 0.5640/0.5800 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
NZD is likely to trade in a range
24-HOUR VIEW: "In early Asian trade yesterday, when NZD was at 0.5705, we pointed out that it “could continue to rebound but any advance is likely part of a 0.5670/0.5725 range.” However, during the late NY session, NZD spiked to a high of 0.5780, pulling back sharply to close at 0.5745 (+0.77%). The brief rise did not result in any increase in upward momentum. Today, we expect NZD to trade in a range, most likely between 0.5670 and 0.5770."
1-3 WEEKS VIEW: "We revised our view to negative last Wednesday (26 Mar, spot at 0.5730), indicating that NZD 'is likely to edge lower toward the major support zone between 0.5650 and 0.5670.' After NZD dropped to 0.5649 and rebounded, we pointed out yesterday (02 Apr, spot at 0.5705) that 'if NZD breaks above 0.5725 (‘strong resistance’ level), it would mean that the weakness in NZD has stabilised. NZD subsequently rose briefly to 0.5770. The current price movements are likely part of a range trading phase, expected to be between 0.5640 and 0.5800."
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