NZD/USD: Likely to trade in a range of 0.5970/0.6080 for now – UOB Group

New Zealand Dollar (NZD) is likely to trade in a range between 0.6000 and 0.6050. In the longer run, upward pressure has faded; NZD is likely to trade in a range of 0.5970/0.6080 for now.

Upward pressure has faded

24-HOUR VIEW: "Following the sharp drop in NZD early last Friday, we indicated that 'the rapid increase in downward momentum suggests NZD could weaken further, even though it is unlikely to reach the major support at 0.5970.' We noted that 'there is another support level at 0.5995.' However, NZD fell less than expected, rebounding from a low of 0.5998. While the current price movements are likely part of a range-trading phase, the firmer underlying tone suggests NZD is likely to trade in a higher range between 0.6000 and 0.6050 today."

1-3 WEEKS VIEW: "After holding a positive NZD view for more than a week, we revised our view to neutral last Friday (13 Jun, spot at 0.6025). We indicated that 'upward pressure has faded.' We also indicated that NZD 'is likely to trade in a range of 0.5970/0.6080 for now.' There is no change

in our view."