Key Points
- The New Zealand dollar dropped during the past few hours against the US Dollar.
- The greenback gained heavily, as it looks like Donald Trump has all the chances of winning the US presidential elections.
- Today in New Zealand, the Electronic Card Retail Sales was reported by Statistics New Zealand.
- The result was below the forecast, as there was a rise of 0.6% in Oct 2016, compared with the previous month.
NZDUSD Technical Analysis
The New Zealand dollar after climbing towards 0.7400 against the US Dollar found sellers, and NZDUSD moved down. Furthermore, the increased chances of Donald Trump winning the US presidential elections ignited a rally in the greenback.
The NZDUSD pair recently broke a bullish trend line formed on the hourly chart, and the 21 hourly simple moving average. So, the downside may extend in the short term towards 0.7250.
The pair is currently correcting, but finding sellers near the 21 hourly simple moving average and the 50% Fib retracement level of the last drop from the 0.7403 high to 0.7271 low.
New Zealand Electronic Card Retail Sales
Today in New Zealand, the Electronic Card Retail Sales, which measures purchases made in New Zealand on debit, credit and store cards was reported by Statistics New Zealand.
The market was expecting a rise of more than 1% in sales in Oct 2016, compared with the previous month. However, the result was lower, as it increased 0.6%. The report added that “Total retail spending using electronic cards was $5.1 billion in October 2016, up $205 million (4.2 percent) from October 2015. The largest increase came from the hospitality industry, up $124 million (15 percent)”.
Overall, it looks the NZDUSD pair may struggle in the short term, and the recent break may present a sell opportunity.
