The slight increase in upward momentum is likely to lead to New Zealand Dolla (NZD) trading in a higher range of 0.5810/0.5850. In the longer run, NZD has likely moved into a 0.5770/0.5865 range-trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

NZD has likely moved into a range-trading phase

24-HOUR VIEW: "Yesterday, we expected NZD to 'trade in a sideways range of 0.5805/0.5840.' NZD then traded in a range of 0.5805/0.5844 before settling at 0.5844 (+0.22%). There has been a slight increase in upward momentum, but this likely to lead to NZD trading in a higher range of 0.5810/0.5850 instead of a continued advance."

1-3 WEEKS VIEW: "We highlighted last Thursday (02 Octomber, spot at 0.5820) that that NZD 'has likely moved into a 0.5770/0.5865 range-trading phase.' Our view remains unchanged for now."