New Zealand Dollar (NZD) is likely to trade in a range between 0.5760 and 0.5800. In the longer run, pullback in NZD has scope to extend, but any further decline is expected to face strong support at 0.5720, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Pullback in NZD has scope to extend

24-HOUR VIEW: "We stated yesterday that NZD 'could edge lower and test 0.5740'. We pointed out that 'the major support at 0.5720 is unlikely to come into view'. However, NZD declined less than expected to 0.5745 before rebounding to close higher by 0.37% at 0.5790. There has been a slight increase in upward momentum, but instead of continuing to rise today, NZD is more likely to trade in a range between 0.5760 and 0.5800."

1-3 WEEKS VIEW: "We highlighted yesterday (05 Jan, spot at 0.5755) that the pullback in NZD from last month’s high of 0.5853 'has scope to extend'. However, we were of the view that 'any decline is expected to face strong support at 0.5720'. We will maintain the same view as long as 0.5800 (no change in ‘strong resistance’ level from yesterday) is not breached."