NZD/USD: Under mild downward pressure – UOB Group

New Zealand Dollar (NZD) is under mild downward pressure against the US Dollar (USD); it could drift lower and test 0.5855. In the longer run, outlook is mixed; NZD is expected to trade in a 0.5835/0.6030 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is expected to trade in a 0.5835/0.6030 range

24-HOUR VIEW: "While we expected NZD to decline yesterday, we indicated that 'as there is no significant increase in downward momentum, it is unlikely to be able to break clearly below 0.5860.' Our analysis was not wrong, as NZD drifted to a low of 0.5862, settling at 0.5875 (-0.39%). While there is still no clear increase in downward momentum, the underlying tone remains soft. Today, NZD could drift lower and test 0.5855. The major support at 0.5835 is unlikely to come under threat. Resistance is at 0.5895; a breach of 0.5910 would suggest the mild downward pressure has eased."

1-3 WEEKS VIEW: "Our update from two days ago (14 May, spot at 0.5935) remains valid. As highlighted, 'the recent price movements have resulted in a mixed outlook.' For the time being, we expect NZD to trade in a 0.5835/0.6030 range."