New Zealand Dollar (NZD) could advance further but is unlikely to be able to reach 0.5960. In the longer run, NZD is expected to range trade, most likely between 0.5860 and 0.5960, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is expected to range trade

24-HOUR VIEW: "We noted a slight increase in upward momentum yesterday. We held the view that NZD 'could edge higher but is unlikely to be able to break above 0.5930.' The anticipated advance exceeded our expectations as NZD broke above 0.5930 and reached a high of 0.5942. Further advance is not ruled out, but NZD is unlikely to be able to reach 0.5960 today (there is another resistance level at 0.5945). On the downside, should NZD break below 0.5900 (with minor support at 0.5915), it would mean that the current upward pressure has eased."

1-3 WEEKS VIEW: "There is not much to add to our update from yesterday (06 Aug, spot at 0.5910). As indicated, 'the recent downward momentum has largely faded,' and NZD 'is expected to trade in a range between 0.5860 and 0.5960'."