New Zealand Dollar (NZD) is facing mild upward pressure and may test 0.5770; a clear break above this level appears unlikely. In the longer run, outlook for NZD remains neutral, but a narrower range of 0.5700/0.5770 is likely enough to contain the price movements for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Outlook for NZD remains neutral

24-HOUR VIEW: "NZD closed largely unchanged at 0.5740 (-0.05%) two days ago. Yesterday, we stated that 'momentum indicators are still mostly flat, but while we continue to expect range-trading, the softer underlying tone suggests a lower range of 0.5725/0.5755.' Our view turned out to be correct, as NZD traded between 0.5725 and 0.5754, closing just below the high at 0.5753 (+0.24%). The slight increase in upward momentum may lead to NZD testing the major resistance at 0.5770 today. A clear break above this level appears unlikely for now. Support is at 0.5735; a breach of 0.5725 would indicate that the current mild upward pressure has faded."

1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (23 Oct, spot at 0.5740). As highlighted, while the outlook for NZD remains neutral, a narrower range of 0.5700/0.5770 is likely sufficient to contain the price movements for now."