Key Points
- The New Zealand dollar recently faced resistance near 0.7000 and 0.7020, and moved down.
- There are two bearish trend lines formed with resistance at 0.7020 on the hourly chart of NZDUSD.
- In New Zealand today, the NZIER Business Confidence for Q1 2017 was released by the New Zealand Institute of Economic Research.
- The result was mixed, as there was a rise of 17%, less than the last increase of 28%.
NZDUSD Technical Analysis
The New Zealand dollar is slowly following a downtrend with resistance near 0.7000 against the US Dollar. There were clear hurdles for the NZDUSD pair, pushing it below the 0.6990 level. On the upside, there are two bearish trend lines formed with resistance at 0.7020 on the hourly chart.
The pair is already below the 21 hourly simple moving average, and trading below the 61% Fib retracement level of the last wave from the 0.6976 low to 0.7021 high.
So, there is a chance of the pair testing the last low of 0.6976, and it could even test the 1.236 extension of the last wave from the 0.6976 low to 0.7021 high at 0.6965.
NZIER Business Confidence
Today in New Zealand, the NZIER Business Confidence for Q1 2017 was released by the New Zealand Institute of Economic Research. The market was expecting the Business Confidence to increase by roughly 20% in Q1 2017, compared with the previous quarter.
The outcome mixed, as there was a rise of 17%, less than the last increase of 28%. Compared with the previous, there could be a fall from a net 26 percent of businesses. The report added that the “decrease in confidence comes despite businesses reporting their own activity holding firm, suggesting annual growth in the New Zealand economy will remain solid around 3 percent over the coming quarters”.
Overall, the NZDUSD might not recover, and could trade lower towards 0.6975 and 0.6965 in the short term.
