NZD/USD: Any advance is likely part of a higher range of 0.5840/0.5880 – UOB Group

New Zealand Dollar (NZD) could continue to rebound; any advance is likely part of a higher range of 0.5840/0.5880. In the longer run, NZD appears to have entered a range-trading phase; for the time being, it is likely to trade between 0.5820 and 0.5920, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD appears to have entered a range-trading phase

24-HOUR VIEW: "We expected NZD to trade in a range between 0.5835 and 0.5875 yesterday. However, NZD fell to a low of 0.5819, rebounded to 0.5865, and then closed largely unchanged at 0.5859 (-0.02%). The rebound has gained some momentum, but not significantly. Today, NZD could continue to rebound, but we view any advance as part of a higher range of 0.5840/0.5880."

1-3 WEEKS VIEW: "On Monday (25 Aug, spot at 0.5865), we highlighted that NZD 'appears to have entered a range-trading phase, and for the time being, it is likely to trade between 0.5820 and 0.5920.' Yesterday, Wednesday, NZD dropped briefly to 0.5819 and then rebounded strongly. As there has been no increase in downward momentum, we will maintain our view of range-trading for now."