The New Zealand Dollar (NZD) is expected to trade in a sideways range of 0.5955/0.5995. In the longer run, there is still no clear increase in downward momentum; the chance of a sustained break below 0.5950 is not high, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

NZD may test 0.5995 near term

24-HOUR VIEW: “Two days ago, NZD fell to a low of 0.5958. Yesterday, when NZD was at 0.5985, we held the view that ‘instead of continuing to decline, NZD is more likely to trade sideways between 0.5965 and 0.6005.’ Instead of trading in a range, NZD edged to a low of 0.5954. NZD rebounded from the low to close slightly lower at 0.5974 (-0.12%). The mild decline did not result in any increase in momentum, and we continue to expect NZD to trade sideways. Expected range for today: 0.5955/0.5995.”