NZD/USD is expected to navigate between 0.5865 and 0.5995 in the short term according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: Yesterday, we expected NZD to trade sideways in a range of 0.5890/0.5935. NZD then traded in a narrower range than expected (0.5897/0.5926). Momentum indicators are flat, and we continue to expect NZD to trade sideways, probably in a range of 0.5890/0.5930.

Next 1-3 weeks: There is not much to add to our update from last Friday (24 Aug, spot at 0.5920). As highlighted, we continue to expect NZD to trade in a range, albeit a lower one of 0.5865/0.5995. Looking ahead, NZD has to break clearly below 0.5865 before a sustained decline is likely