NZDUSD Under Pressure Post REINZ House Price Index Release
Aayush Jindal
Key Highlights
New Zealand dollar traded lower against the US dollar as sellers managed to defend the 0.7450 resistance area successfully.
New Zealand REINZ House Price Index was released earlier today which registered a decline of 1% in January 2015.
NZDUSD moved lower to test the 0.7400 support area where buyers appeared.
New Zealand REINZ House Price IndexEarlier today, the New Zealand REINZ House Price Index report was released. The outcome was mostly in line with the expectation, as the index declined by 1% in January 2015, compared to the preceding month. REINZ also stated that the national median price rose 6.0% in January 2015, compared to the same month of the last year. Moreover, Auckland’s median price increased by 16.0%.Furthermore, there were 4,841 dwelling sales in January 2015, which is 2.6% more than January 2014 and down 31.5% compared to December. There was a release lined up in Australia as well, as the Home Loans released by the Australian Bureau of Statistics. The outcome was way above the expectation, as the Australian home sales gained by 2.7% in December 2014, compared with a month ago. This was a lot higher compared to the expectation of 2%. The last reading was a decline of 0.4%. So, overall the report was on the positive side.Technical AnalysisThere is a bullish trend line formed on the hourly chart of the NZDUSD pair, which managed to sustain the downside many times. However, recently failed around an important resistance at 0.7450 where the Kiwi dollar sellers appeared to defend the upside. One key point to note here is the fact the pair failed two times around the mentioned area which created a double top pattern possibility.Let us see how the pair trades in the coming sessions and whether it can test the highlighted trend line or not. The 55 simple moving average on the hourly chart is also sitting around the same area. So, there is a major support forming at 0.7400, which might act as a barrier for the pair moving ahead.US MBA Mortgage ApprovalsLater during the NY session, the US MBA Mortgage Applications will be released by the Mortgage Bankers Association. The last reading stands at 1.3% so any positive outcome might help the US dollar in the near term.
Let us see how the pair trades in the coming sessions and whether it can test the highlighted trend line or not. The 55 simple moving average on the hourly chart is also sitting around the same area. So, there is a major support forming at 0.7400, which might act as a barrier for the pair moving ahead.US MBA Mortgage ApprovalsLater during the NY session, the US MBA Mortgage Applications will be released by the Mortgage Bankers Association. The last reading stands at 1.3% so any positive outcome might help the US dollar in the near term.
Let us see how the pair trades in the coming sessions and whether it can test the highlighted trend line or not. The 55 simple moving average on the hourly chart is also sitting around the same area. So, there is a major support forming at 0.7400, which might act as a barrier for the pair moving ahead.US MBA Mortgage ApprovalsLater during the NY session, the US MBA Mortgage Applications will be released by the Mortgage Bankers Association. The last reading stands at 1.3% so any positive outcome might help the US dollar in the near term.