New Zealand Dollar (NZD) is likely to trade in a range of 0.5935/0.5965. In the longer run, upward momentum is building, but not significantly; NZD could edge higher, but it is currently unclear if it can reach 0.6000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD might edge higher

24-HOUR VIEW: "After NZD rose more than we expected last Thursday, we indicated on Friday that 'there appears to be sufficient momentum for NZD to test 0.5980 today, but a sustained rise above this level appears unlikely.' However, NZD did not quite test 0.5980 as it traded in a quiet manner between 0.5948 and 0.5971. The price action appears to be part of a range trading phase. That said, the softer underlying tone suggests NZD is likely to trade in a lower range of 0.5935/0.5965."

1-3 WEEKS VIEW: "We highlighted last Friday (08 Aug, spot at 0.5960) that 'upward momentum is building, but not significantly.' We expected NZD to 'edge higher, but we pointed out that “it is currently unclear if it can reach 0.6000.' There is no change in our view. Overall, only a breach of 0.5910 (no change in ‘strong support’ level) would indicate the buildup in momentum has faded."