NZDUSD - Key Factors Suggest NZD at Major Turning Point
Aayush Jindal
Key Highlights
New Zealand dollar somehow survived from losses and managed to trade higher against the US Dollar.
NZDUSD is facing a major resistance on the upside around 0.6600.
New Zealand Producer Price Index Input released by the Statistics New Zealand posted a decline of 0.3% in Q2 2015, compared with the expectation of a 0.5% decrease.
New Zealand Producer Price Output was in line with the forecast of a 0.2% decline.
New Zealand PPIEarlier during the Asian session, the Producer Price Index, which is a measurement of the rate of inflation experienced by producers was released by the Statistics New Zealand. The market was expecting the PPI Input to register a decline of 0.5% in the second quarter of 2015, compared with the preceding quarter. However, the outcome was a bit on the higher side, as the New Zealand Producer Price Index Input came in at -0.3%.Furthermore, the New Zealand Producer Price Index Output came in line with the market expectation, as there was a decline of 0.2% in the second quarter of 2015, compared with the preceding quarter.Commenting on the report, the prices manager, Chris Pike, stated "Prices were down 5.5 percent for dairy cattle farming outputs, and down 4.2 percent for dairy product manufacturing inputs. Both falls were due to lower farm-gate milk prices".There was a major impact noted on the NZDUSD pair after the release, and it continued to trade in a range during the Asian session.NZDUSD Technical AnalysisThe New Zealand Dollar recently managed to gain bids and traded higher against the US dollar, but the upside was not much as there are many hurdles aligned on the way up for the pair. There are a couple of bearish trend lines formed on the 4-hours chart, which also sitting along with the 200 simple moving average.So, there is a high probability that the NZDUSD pair might struggle to clear the highlighted resistance area moving ahead. A break above 0.6600 might signal more gains in the near term.On the downside, an initial support can be seen around 0.6550, followed by the last swing low of 0.6515. The H4 RSI is above the 50 level, which is a positive sign for buyers.
So, there is a high probability that the NZDUSD pair might struggle to clear the highlighted resistance area moving ahead. A break above 0.6600 might signal more gains in the near term.On the downside, an initial support can be seen around 0.6550, followed by the last swing low of 0.6515. The H4 RSI is above the 50 level, which is a positive sign for buyers.
So, there is a high probability that the NZDUSD pair might struggle to clear the highlighted resistance area moving ahead. A break above 0.6600 might signal more gains in the near term.On the downside, an initial support can be seen around 0.6550, followed by the last swing low of 0.6515. The H4 RSI is above the 50 level, which is a positive sign for buyers.