NZD/USD faces extra range bound in the short term – UOB

In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, NZD/USD is now expected to navigate the 0.5860-0.5960 range for the time being.

Key Quotes

24-hour view: We highlighted yesterday that “upward momentum is beginning to build, albeit tentatively.” We held the view that NZD could edge higher, but any advance is expected to face solid resistance at 0.5935. We indicated that “support is at 0.5900, followed by 0.5880.” In NY trade, NZD dipped briefly to 0.5880 before rebounding. The rebound did not threaten 0.5935 (high has been 0.5927). Momentum still appears to be building, and there is room for NZD to edge above 0.5935. The major resistance at 0.5960 is unlikely to come into view. On the downside, if NZD breaks below 0.5880 (minor support is at 0.5900), it would indicate that the current mild upward pressure has faded. 

Next 1-3 weeks: Our update from Monday (11 Sep, spot at 0.5900) is still valid. As highlighted, the recent downward pressure has subsided. For now, NZD is likely to trade in a range, probably between 0.5860 and 0.5960.