NZDUSD – New Zealand Dollar Remains In Driver’s Seat Vs USD
Aayush Jindal
Key Highlights
The New Zealand Dollar remained in an uptrend against the US Dollar with support near 0.7050.
There is a major bullish trend line with support at 0.7050 on the 4-hours chart of NZDUSD.
New Zealand NZIER Business Confidence released by the New Zealand Institute of Economic Research posted an increase of 28% in Q4 2016.
Later today, the US Economic Optimism Index will be released by The Investor's Business Daily (IBD) TechnoMetrica Institute of Policy and Politics (TIPP), which is forecasted to increase from 54.8 in Jan 2016.
NZDUSD Technical Analysis
The New Zealand dollar after a close above 0.7000 gained pace and moved into the bullish zone vs the US Dollar. The NZDUSD pair is currently supported near 0.7050, and may trade higher.When we look at the 4-hours chart of NZDUSD, a major bullish trend line with support at 0.7050. The same support also coincides with the 50% Fib retracement level of the last wave from the 0.6960 low to 0.7146 high.So, if the pair continues to dip or correct lower, then it may find bids and support near 0.7050. The next support could be around the 100 simple moving average on the same chart since it also coincides with the 61.8% Fib retracement level of the last wave from the 0.6960 low to 0.7146 high.On the upside, a break above the 0.7150 is needed for further gains and a push towards the all-important 0.7240.
New Zealand NZIER Business Confidence
Earlier during the Asian session, the New Zealand NZIER Business Confidence that shows the business outlook was released by the New Zealand Institute of Economic Research.The market was positioned for a substantial increase in Q4 2016, compared with the previous quarter. The result was also better, as there was an increase of 28% in Q4 2016. The report published added that the “latest NZIER Quarterly Survey of Business Opinion shows business confidence remained high at the end of 2016, with a net 26 percent of businesses expecting an improvement in economic conditions over the coming months”.Overall, the NZD may trade higher in the short term as long as it is above the highlighted trend line support near 0.7050.
When we look at the 4-hours chart of NZDUSD, a major bullish trend line with support at 0.7050. The same support also coincides with the 50% Fib retracement level of the last wave from the 0.6960 low to 0.7146 high.So, if the pair continues to dip or correct lower, then it may find bids and support near 0.7050. The next support could be around the 100 simple moving average on the same chart since it also coincides with the 61.8% Fib retracement level of the last wave from the 0.6960 low to 0.7146 high.On the upside, a break above the 0.7150 is needed for further gains and a push towards the all-important 0.7240.
The market was positioned for a substantial increase in Q4 2016, compared with the previous quarter. The result was also better, as there was an increase of 28% in Q4 2016. The report published added that the “latest NZIER Quarterly Survey of Business Opinion shows business confidence remained high at the end of 2016, with a net 26 percent of businesses expecting an improvement in economic conditions over the coming months”.Overall, the NZD may trade higher in the short term as long as it is above the highlighted trend line support near 0.7050.