The New Zealand Dollar (NZD) remains under bearish pressure, with further declines expected in the near term. However, analysts at UOB Group, Quek Ser Leang and Peter Chia, believe that the key support level at 0.5690 is unlikely to be reached today. A secondary support level is noted at 0.5720.
Short-Term Outlook (24-Hour View):
On Tuesday, UOB had anticipated a range-bound session between 0.5760 and 0.5805, but NZD/USD instead broke lower, briefly touching 0.5735 after hitting a high of 0.5806.
The sharp drop signals growing bearish momentum, and further losses are likely. However, analysts do not expect the pair to test the major support at 0.5690 today, with 0.5720 acting as a nearer and stronger support level. Resistance is seen at 0.5765 and 0.5780.
Medium-Term Outlook (1–3 Weeks):
As of October 8, with spot at 0.5750, UOB shifted its medium-term outlook on NZD to bearish, identifying 0.5690 as the critical level to watch.
This view remains intact as long as the resistance at 0.5810 holds (previously at 0.5820).