The New Zealand Dollar (NZD) is under mild downward pressure; it could edge lower, but any decline is unlikely to reach the major support at 0.5840. In the longer run, for the time being, NZD is likely to trade in a range between 0.5840 and 0.5950, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

NZD is likely to trade in a range between 0.5840 and 0.595

24-HOUR VIEW: “Last Friday, NZD edged to a high of 0.5928. Yesterday, we pointed out, ‘despite the advance, there has been no increase in momentum.’ We held the view that NZD ‘is expected to trade in a 0.5880/0.5920 range.’ However, NZD dropped to a low of 0.5865, closing at 0.5888 (-0.61%). There has been a slight increase in momentum. Today, we expect NZD to edge lower, but as downward momentum is not strong, any decline is unlikely to reach the major support at 0.5840 (there is another support level at 0.5860). On the upside, should NZD break above 0.5915 (minor resistance is at 0.5895), it would mean that the current mild downward pressure has eased.”

1-3 WEEKS VIEW: “We continue to hold the same view as last Thursday (28 Nov, spot at 0.5895). As indicated, the current price movements are likely part of a range trading phase. For the time being, NZD is likely to trade between 0.5840 and 0.5950.”