NZDUSD – New Zealand Dollar Downtrend Remains Intact
Aayush Jindal
Key Highlights
The New Zealand Dollar’s continuous failure to break 0.7050 against the US Dollar ignited a downside wave.
There are two crucial bearish trend lines with resistance around 0.6920 on the 4-hours chart of NZDUSD.
Today in New Zealand, the Electronic Card Retail Sales for April 2017 (MoM) reported by Statistics New Zealand registered a rise of 1.1%.
Today in China, the Consumer Price Index April 2017 (MoM) released by the National Bureau of Statistics of China posted an increase of 0.1%.
NZDUSD Technical Analysis
The New Zealand Dollar faced heavy offers near 0.7050 against the US Dollar and started a downside move. The NZDUSD pair is now in a downtrend, eyeing a test of 0.6850.The pair recently broke the 100 and 200 simple moving average (H4), and the 0.6980 support to ignite a decline. The pair traded as low as 0.6839 from where a correction was initiated.The mentioned correction stopped near two crucial bearish trend lines with resistance around 0.6920 on the 4-hours chart.NZDUSD resumed its downside move, and now trading below the 38.2% Fib retracement level of the last wave from 0.6839 low to 0.6945 high.To sum it up, it looks like the pair may head further lower, as long as it is trading below 0.6920-30.
New Zealand Electronic Card Retail Sales
Recently in New Zealand, the Electronic Card Retail Sales for April 2017 was reported by Statistics New Zealand. The market was expecting the Card Retail Sales to increase by roughly 5% in April 2017, compared with the same month a year ago.The actual result was a bit lower, as there was an increase of 4.5%. The report added that “The largest rise came from the consumables industry, up $42 million (2.2 percent). The consumables industry includes grocery and liquor retailing”. In terms of the monthly change, there was a rise of 0.1%, where the market was not expecting any increase.Overall, the NZDUSD pair may correct a few pips, but likely to remain under 0.6920.
Economic Releases to Watch Today
France Trade Balance for March 2017 - Forecast €-6.00B, versus €-6.57B previous.
France Industrial Output for March 2017 (MoM) - Forecast 1%, versus -1.6% previous.
Italian Industrial Output for March 2017 (MoM) - Forecast 0.4%, versus 1% previous.
US Import Price Index April 2017 (MoM) – Forecast +0.1%, versus -0.2% previous.
US Export Price Index April 2017 (MoM) – Forecast +0.1%, versus +0.2% previous.
The European Central Bank's President Mario Draghi’s Speech at 12:00 GMT.
The pair recently broke the 100 and 200 simple moving average (H4), and the 0.6980 support to ignite a decline. The pair traded as low as 0.6839 from where a correction was initiated.The mentioned correction stopped near two crucial bearish trend lines with resistance around 0.6920 on the 4-hours chart.NZDUSD resumed its downside move, and now trading below the 38.2% Fib retracement level of the last wave from 0.6839 low to 0.6945 high.To sum it up, it looks like the pair may head further lower, as long as it is trading below 0.6920-30.
The actual result was a bit lower, as there was an increase of 4.5%. The report added that “The largest rise came from the consumables industry, up $42 million (2.2 percent). The consumables industry includes grocery and liquor retailing”. In terms of the monthly change, there was a rise of 0.1%, where the market was not expecting any increase.Overall, the NZDUSD pair may correct a few pips, but likely to remain under 0.6920.