Key Points
- The New Zealand Dollar declined this past week towards 0.7250 against the US Dollar.
- There are two important bearish trend lines with resistance near 0.7315 forming on the hourly chart of the NZDUSD pair.
- Recently in New Zealand, the Retail Sales report for Q2 2017 was released by the Statistics New Zealand.
- The outcome was above the forecast, as there was a rise of 2% in sales (QoQ).
NZDUSD Technical Analysis
The New Zealand Dollar was under a lot of pressure and declined heavily this past week towards 0.7250 against the US Dollar. The NZDUSD pair traded below 0.7300 and the 21 hourly simple moving average to post a new low of 0.7252.
Later, the pair started a correction and traded towards 0.7330 where it faced sellers. On the upside, there are two important bearish trend lines with resistance near 0.7315 forming on the hourly chart.
The pair is once again moving lower and currently trading near the 50% Fib retracement level of the last wave from the 0.7252 low to 0.7330 high and 21 hourly simple moving average at 0.7290.
New Zealand Retail Sales
Today in New Zealand, the Retail Sales report for Q2 2017 was released by the Statistics New Zealand. The market was positioned for a rise of more than 1.5% in sales compared with the previous quarter.
The actual result was above the forecast, as there was a rise of 2% in sales. The Core Retail Sales also posted a decent rise of 2.1%, more than the last 1.2%. The report added that:
After adjusting for price and seasonal effects, retail sales volumes in the food and beverage services industry increased 4.2 percent in the quarter. This sector includes cafes, restaurants, bars, takeaways, and catering services.
Overall, the NZDUSD pair may correct higher, but it won’t be easy for buyers to clear the 0.7315-20 resistance zone.
