NZD/USD – New Zealand Dollar Is Increasingly Bullish Vs USD
Aayush Jindal
Key Highlights
The New Zealand Dollar has formed a medium term bullish trend above 0.7100 against the US Dollar.
There are two important bullish trend lines with support at 0.7100 and 0.7030 formed on the 4-hours chart of NZD/USD.
Today in New Zealand, the Manufacturing sales for Q1 2017, released by Statistics New Zealand posted a decline of 0.3%.
Today, the Euro Zone Gross Domestic Product for Q1 2017 will be released by the Eurostat, which is forecasted to register an increase of 0.5% (QoQ).
NZDUSD Technical Analysis
The New Zealand Dollar after a long struggle below 0.7000 against the US Dollar gained traction. The NZD/USD pair is now trading well in the bullish zone above 0.7100.The upside move gained pace once the pair broke a key resistance zone at 0.6950. It gave an opening to buyers to push the pair above 0.7000 and the 100 and 200 simple moving averages (H4).The pair even traded above the 0.7150 resistance and cleared an expanding triangle resistance at 0.7170. On the downside, there are two important bullish trend lines with support at 0.7100 and 0.7030 formed on the 4-hours chart.As long as the pair is above 0.7100, buyers remain in control. On the upside, a break above 0.7200 could take the pair towards 0.7240.
New Zealand Manufacturing Sales
Today in New Zealand, the Manufacturing sales for Q1 2017 was released by Statistics New Zealand. The market was expecting an increase of roughly 0.1% in sales.The actual result was below the forecast, as there was a decline of 0.3% in sales in Q1 2017. Commenting about the same, the business indicators manager, Craig Liken, stated:
The fall in meat and dairy sales volumes followed a similar fall in the previous quarter. In contrast, sales values were up $77 million, mainly reflecting a rise in dairy product prices.
The NZD/USD pair traded a few pips lower after the release, but remains supported on the downside near 0.7170 and 0.7140.
Economic Releases to Watch Today
German Factory Order for April 2017 (MoM) – Forecast -0.4%, versus +1% previous.
Euro Zone Gross Domestic Product Q1 2017 (QoQ) - Forecast 0.5%, versus 0.5% previous.
Euro Zone Gross Domestic Product Q1 2017 (YoY) - Forecast 1.7%, versus 1.7% previous.
UK Halifax House Price Index for May 2017 (MoM) - Forecast -0.1%, versus -0.1% previous.
UK Halifax House Price Index for May 2017 (3m/YoY) - Forecast +3%, versus +3.8% previous.
The upside move gained pace once the pair broke a key resistance zone at 0.6950. It gave an opening to buyers to push the pair above 0.7000 and the 100 and 200 simple moving averages (H4).The pair even traded above the 0.7150 resistance and cleared an expanding triangle resistance at 0.7170. On the downside, there are two important bullish trend lines with support at 0.7100 and 0.7030 formed on the 4-hours chart.As long as the pair is above 0.7100, buyers remain in control. On the upside, a break above 0.7200 could take the pair towards 0.7240.
The actual result was below the forecast, as there was a decline of 0.3% in sales in Q1 2017. Commenting about the same, the business indicators manager, Craig Liken, stated: