Key Points
- The New Zealand Dollar surged towards 0.7300 against the US Dollar before declining sharply.
- There is a bearish trend line formed with resistance at 0.7220-30 on the hourly chart of NZDUSD.
- Today in New Zealand, the Business NZ PMI for June 2017 was released by the Business NZ.
- The outcome was above the forecast, as there was an increase from 56.8 to 58.5 in June 2017.
NZDUSD Technical Analysis
There was a solid uptrend in New Zealand Dollar, as it moved above the 0.7300 handle against the US Dollar. The NZDUSD pair faced sellers near 0.7320 and started a downside move to trade below the 21 hourly simple moving average.
The pair also broke the 0.7250 and 0.7220 support area and traded as low as 0.7186 where buyers appeared. On the upside, it is facing a bearish trend line formed with resistance at 0.7220-30 on the hourly chart.
Moreover, the 23.6% Fib retracement level of the last decline from the 0.7319 high to 0.7186 low might also act as a hurdle for buyers.
Business NZ PMI
Recently in New Zealand, the Business NZ PMI for June 2017 was released by the Business NZ. The market was positioned for no major increase in the PMI from the last reading of 56.8 in June 2017.
The result was above the forecast, as there was an increase from 56.8 to 58.5 in June 2017. The report added that “This was 1.6 points higher than April, and the highest value since January 2016. Overall, the sector has remained in expansion in all months since October 2012, and New Zealand’s manufacturing sector saw expansion in activity lift during May”.
Overall, the NZDUSD pair may correct a few pips higher, but likely to face resistance near 0.7220-35 in the near term.
