NZDUSD – New Zealand Dollar Poised For Gains Vs US Dollar
Aayush Jindal
Key Highlights
The New Zealand Dollar recovered well from the 0.6909 low against the US Dollar.
A monster descending channel with resistance at 0.6970 on the 4-hours chart of NZDUSD was broken, opening the doors for more gains.
Today in New Zealand, the Consumer Price Index for Q1 2017 (YoY) released by the Statistics New Zealand posted an increase of 2.2%.
Today in the US, the Initial Jobless Claims (April 14, 2017) will be released by the US Department of Labor, which is forecasted to increase from 234K to 242K.
NZDUSD Technical Analysis
The New Zealand Dollar has likely formed a base against the US Dollar at 0.6900. The NZDUSD is likely to trade higher as long as above 0.7000 in the near term.In the last analysis, we saw a monster descending channel with resistance at 0.6970 on the 4-hours chart of NZDUSD. The same descending channel was broken recently to clear the way for a move above 0.7000.The pair gained strength and moved above the 50% Fib retracement level of the last decline from the 0.7089 high to 0.6909 low. The pair also moved above the 100 and 200 simple moving average at 0.6990 (H4).These all are positive signs, and suggests that there are chances of more upsides towards 0.7050 in the near term.
New Zealand Consumer Price Index
Earlier during the Asian session, the New Zealand Consumer Price Index for Q1 2017 was released by the Statistics New Zealand. The market was positioned for an increase of 2% in the CPI in Q1 2017, compared with the same quarter a year ago.The result was above the forecast, as the CPI increased 2.2%. In terms of the quarterly change, there was a rise of 1%, more than the forecast of 0.8%. The report added that the “Housing-related prices continued to increase, up 3.3 percent in the March 2017 year. Prices increased for newly built houses, excluding land (up 6.7 percent), and for housing rentals (up 2.3 percent)”.Overall, the result helped the New Zealand Dollar in gaining bids, and NZDUSD remains elevated for a move towards 0.7050.
Economic Releases to Watch Today
German Producer Price Index for March 2017 (MoM) – Forecast +0.1%, versus +0.2% previous.
German Producer Price Index for March 2017 (YoY) – Forecast +3.1%, versus +3.1% previous.
US Initial Jobless Claims - Forecast 242K, versus 234K previous.
Euro Zone Consumer Confidence April 2017 (Preliminary) – Forecast -4.5, versus -5 previous.
In the last analysis, we saw a monster descending channel with resistance at 0.6970 on the 4-hours chart of NZDUSD. The same descending channel was broken recently to clear the way for a move above 0.7000.The pair gained strength and moved above the 50% Fib retracement level of the last decline from the 0.7089 high to 0.6909 low. The pair also moved above the 100 and 200 simple moving average at 0.6990 (H4).These all are positive signs, and suggests that there are chances of more upsides towards 0.7050 in the near term.
The result was above the forecast, as the CPI increased 2.2%. In terms of the quarterly change, there was a rise of 1%, more than the forecast of 0.8%. The report added that the “Housing-related prices continued to increase, up 3.3 percent in the March 2017 year. Prices increased for newly built houses, excluding land (up 6.7 percent), and for housing rentals (up 2.3 percent)”.Overall, the result helped the New Zealand Dollar in gaining bids, and NZDUSD remains elevated for a move towards 0.7050.