The New Zealand Dollar (NZD) is likely to trade in a sideways range of 0.6100/0.6140, and if it breaks lower, NZD is likely to drift lower towards 0.6085, UOB Group analysts note.

A break below 0.6100/0.6140 to target 0.6085

24-HOUR VIEW: “NZD traded between 0.6108 and 0.6130 yesterday, narrower than our expected sideways trading range of 0.6100/0.6140. The quiet price action provides no fresh clues. We continue to expect NZD to trade in a sideways range of 0.6100/0.6140.”

1-3 WEEKS VIEW: “Our most recent narrative was from last Tuesday (18 Jun, spot at 0.6130), wherein “as long as NZD remains below 0.6180, it could drift lower towards the support at 0.6085.” While NZD has not been able to make any further headway on the downside, we continue to hold the same view. Overall, only a breach of 0.6160 (‘strong resistance’ level has moved lower from 0.6180) would indicate that the current mild downward pressure has faded.”