Key Points
- The New Zealand Dollar declined recently and settled below 0.6900 against the US Dollar.
- There is a major bearish trend line forming with resistance at 0.6860 on the hourly chart of NZDUSD.
- Today in New Zealand, the Building Permits figure for Sep 2017 was released by the Statistics New Zealand.
- The outcome was below the forecast of +2% as there was a decline in the permits by 2.3% (MoM).
NZDUSD Technical Analysis
The New Zealand Dollar started a nasty decline recently and settled below 0.6900 against the US Dollar. The NZDUSD even broke the 0.6850 support and cleared the 21 hourly simple moving average to trade as low as 0.6812.
The pair recovered above 0.6820, but failed to settle above the 50% Fib retracement level of the last decline from the 0.6904 high to 0.0.6912 low. Moreover, a major bearish trend line with resistance at 0.6860 on the hourly chart also acted as a hurdle for buyers.
On the downside, there is a connecting bullish trend line with support at 0.6820. A break below it could ignite a downside wave towards the 0.6800 handle.
New Zealand Building Permits
Recently in New Zealand, the Building Permits figure for Sep 2017 was released by the Statistics New Zealand. The market was positioned for an increase in the Building Permits by 2% compared with the previous month.
The actual result was below the forecast of +2% as there was a decline in the permits by 2.3%. It was also less than the last revised increase of 5.9%. The report added that:
On an annual basis, 30,892 new homes were consented in the September 2017 year – up 3.0 percent compared with the September 2016 year, despite a large fall in Canterbury. The national increase was driven by townhouses and apartments, with slight falls for retirement village units and houses.
Overall, the NZDUSD pair remains under pressure and likely to continue moving lower towards the 0.6800 handle.
