By Areena FxNew Zealand Dollar (NZD) is likely to trade in a range of 0.5725/0.5755. In the longer run, outlook for NZD remains neutral, but a narrower range of 0.5700/0.5770 is likely enough to contain the price movements for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Outlook for NZD remains neutral
24-HOUR VIEW: “NZD traded between 0.5737 and 0.5760 yesterday, which was narrower than our expected range of 0.5720/0.5760. Momentum indicators are still mostly flat, but while we continue to expect range-trading, the softer underlying tone suggests a lower range of 0.5725/0.5755.”
1-3 WEEKS VIEW: “In our most recent narrative from last Friday (17 Oct, spot at 0.5725), we highlighted that ‘the outlook for NZD is neutral now,’ and we expected it to ‘trade in a range between 0.5685 and 0.5770.’ While the outlook remains neutral, a narrower range of 0.5700/0.5770 is likely sufficient to contain the price movements for now.”