The New Zealand Dollar (NZD) is likely to trade within a short-term range of 0.5725 to 0.5755. Over the medium term, the outlook remains neutral, with price movements expected to stay contained within a slightly wider band of 0.5700 to 0.5770, according to UOB Group FX analysts Quek Ser Leang and Peter Chia.
Short-Term View
Yesterday, NZD/USD traded between 0.5737 and 0.5760, a narrower range than the previously expected 0.5720 to 0.5760. Momentum indicators remain mostly flat, supporting continued range-bound trading. However, the softer tone suggests the pair may now trade within a slightly lower range of 0.5725 to 0.5755.
Medium-Term View
As of last Friday (October 17), when NZD/USD was at 0.5725, the outlook was described as neutral, with an expected trading range between 0.5685 and 0.5770. This remains valid, though a narrower range of 0.5700 to 0.5770 is now seen as sufficient to capture price movements over the coming one to three weeks.
