The New Zealand dollar enjoyed a decent upside move against the US Dollar and looks set for more upsides.
There is a critical support formed on the downside for the NZDUSD pair in the form of a bullish trend line on the hourly chart.
New Zealand Food Price Index (FPI) released by the Statistics New Zealand posted a change of 0.4% in June 2016.
Later today, the BoC Interest Rate Decision will be announced by the Bank of Canada, which may ignite some moves in the Canadian dollar.
NZDUSD Technical Analysis
The NZDUSD pair recently traded above the 0.7300 level, and posted a new weekly high of 0.7324. It looks like the pair is in an uptrend and may continue to move higher.As mentioned, there is a major bullish trend line on the hourly chart, which acted as a support earlier and might continue to act as a barrier for sellers.The pair is currently trading near the trend line, so we need to keep a close eye on it. Only an hourly close below the 100 hourly simple moving average may call for a change in the trend.
New Zealand Food Price Index (FPI)
Earlier today in New Zealand, the Food Price Index (FPI), which measures price changes of food bought by households was released by the Statistics New Zealand.The outcome was better than the last decline of 0.5%, as there was a rise of 0.4% in June 2016, compared with the previous month. Moreover, the report added that “Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent”.At this moment, there is a minor bearish pressure on the NZDUSD pair, but as long as the trend line support holds, there is a chance of more gains in the near term.
BoC Interest Rate Decision
Later today during the NY session, there is a major event as the BoC Interest Rate Decision will be announced by the Bank of Canada. The forecast is slated for no change in the interest rates from 0.5%. However, the investors will be keeping a close eye on the rate statement to grab insights.Any disappointing move or comment from the central bank may put a lot of pressure on the Canadian dollar in the short term.
As mentioned, there is a major bullish trend line on the hourly chart, which acted as a support earlier and might continue to act as a barrier for sellers.The pair is currently trading near the trend line, so we need to keep a close eye on it. Only an hourly close below the 100 hourly simple moving average may call for a change in the trend.