Outlook appears unclear; New Zealand Dollar (NZD) could trade in a range between 0.5995 and 0.6045 against US Dollar (USD). In the longer run, price action indicates that further NZD weakness is likely; the level to watch is 0.5950, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Price action indicates that further NZD weakness is likely

24-HOUR VIEW: "Our view for NZD to 'trade in a range between 0.5980 and 0.6020' yesterday was incorrect. Instead of range trading, NZD rose and closed at 0.6036 (+0.63%). While NZD extended its gains after the close, it then dropped back down sharply. The outlook today appears unclear, and NZD could trade in a range between 0.5995 and 0.6045."

1-3 WEEKS VIEW: "We highlighted on Tuesday (08 Jul, spot at 0.6015) that the price action from earlier this week 'indicates that further NZD weakness is likely, and the level to watch is 0.5950.' Yesterday, we pointed out that 'while NZD has yet to show significant follow-through on the downside, we will maintain our view as long as 0.6060 (‘strong resistance’ level) is not breached.' We continue to hold the same view.