Slight increase in downward momentum is likely to lead to a lower range of 0.5720/0.5765 rather than a continued decline. In the longer run, for the time being, NZD is likely to trade in a range between 0.5720 and 0.5805, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD is likely to trade between 0.5720 and 0.5805

24-HOUR VIEW: "On Monday, NZD rose to a high of 0.5775. Yesterday, we highlighted the following: 'The advance has gathered momentum, and NZD could rise further today. That said, overbought conditions could limit any gains to a test of 0.5785. The major resistance at 0.5805 is not expected to come into view. Support is at 0.5775; a breach of 0.5740 would indicate that the current upward pressure has eased'. NZD subsequently rose to 0.5784 and then retreated, reaching a low of 0.5737. Upward pressure has eased, and the slight increase in downward momentum is likely to lead to a lower range of 0.5720/0.5765 rather than a continued decline."

1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (13 Jan, spot at 0.5770). As highlighted, the recent downward pressure has eased, and for the time being, NZD 'is likely to trade in a range between 0.5720 and 0.5805'."