Key Points
- The New Zealand Dollar after testing the 0.6710 support area, moved higher by around 50 pips.
- There is a bearish trend line formed on the hourly chart of the NZDUSD pair, which is acting as a resistance.
- New Zealand Visitor Arrivals report was released by the Statistics New Zealand earlier during the Asian session.
- According to the report, the Visitor Arrivals increased by 7.9% in April 2016, less than the last reading of 18.0%.
Technical Analysis
The New Zealand Dollar managed to recover well after trading as low as 0.6710, but a bearish trend line on the hourly chart of the NZDUSD pair is acting as a hurdle. If the pair continues to struggle near it, then it may decline in the short term.
On the downside, there is a support around the 0.6750 area, as the 50 hourly simple moving average is positioned.
One may consider buying the NZDUSD pair, if there is a break and close above the highlighted trend line, plus the 200 hourly SMA.
New Zealand Visitor Arrivals
Earlier during the Asian session, the Visitor Arrivals, which measures the number of visitors to New Zealand was released by the Statistics New Zealand. The outcome was a bit lower compared with the last one, as it posted an increase of 7.9% in April 2016.
The report added that “Visitor arrivals numbered 256,700 in April 2016, to set a new April record, Statistics New Zealand said today. Visitor arrivals were up 8 percent from April 2015, with a 40 percent increase in visitor arrivals from China”.
Overall, the highlighted trend line and resistance area holds the key. If the pair manages to break it, then there is a chance of more gains.
