NZD/USD Trading in Tight Range, Medium-Term Outlook Uncertain – UOB Group

NZD/USD: Sideways Movement Expected Amid Mixed Outlook – UOB Group

The New Zealand Dollar (NZD) is likely to continue trading within a narrow range of 0.5905/0.5945 against the US Dollar (USD), with an uncertain medium-term outlook, according to UOB Group's FX strategists, Quek Ser Leang and Peter Chia. The pair has been displaying limited movement, with the NZD remaining mostly flat in the past days, as market sentiment remains mixed.

Short-Term Outlook: Tighter Range Likely

In the 24-hour perspective, the NZD/USD traded within a narrow band of 0.5896/0.5932 yesterday, closing slightly lower at 0.5926 (-0.08%). Despite the weaker movement, the stronger underlying tone suggests that the currency pair may remain confined to the upper part of the range, with 0.5905/0.5945 likely to act as resistance.

Medium-Term View: Limited Movement Ahead

Looking ahead, UOB Group maintains its view that the NZD will continue to trade within a tighter range of 0.5835/0.5985 in the medium term. While there are signs of some strength, the mixed market outlook and ongoing uncertainty will likely prevent significant price movements in the near future. This will keep the NZD/USD pair range-bound as traders wait for further developments in the broader economic environment.

In summary, despite some underlying strength, the NZD/USD pair is expected to experience more consolidation in the short term, with limited directional movement likely to persist until clearer signals emerge from the market.