Key Points
- The New Zealand Dollar managed to pop higher from the 0.7240 low against the US dollar.
- There is a bearish trend line formed on the hourly chart of the NZDUSD pair, which is acting as a resistance for the buyers.
- In New Zealand today, the Confidence was released by Westpac New Zealand.
- The outcome was positive, as there was a rise from the last reading of 106 to 108 in Q3 2016.
NZDUSD Technical Analysis
The Kiwi dollar traded positively against the US Dollar recently and moved above the 0.7280 resistance area. However, the upside found sellers near a bearish trend line formed on the hourly chart of the NZDUSD pair.
The pair is now above the 21 hourly simple moving average, which is a positive sign and may act as a support area.
One may consider buying dips in the NZDUSD pair as long as it is above the 21 hourly SMA and look for a break of the trend line.
Westpac Consumer Confidence
Earlier during the Asian session, the New Zealand Consumer Confidence measure, which is an indicator of the mood of consumers or business was released by Westpac New Zealand.
The market was not expecting any major change in the New Zealand Consumer Confidence. However, there was a rise from 106 to 108 in Q3 2016. The opening statement of the report was “June quarter GDP data confirmed that the NZ economy remains on a firm footing. But perhaps more pleasingly, it also hinted that growth is becoming a little more broad-based. We also got our first look at how the housing market is responding to the new RBNZ lending rules. These are just two of the factors that the RBNZ will be weighing up as it considers interest rate settings ahead of this week’s OCR review. We expect it will opt to leave the OCR unchanged but continue to signal that further easing is likely further down the track“.
Overall, the report was positive for the Kiwi dollar, but it all depends whether the bulls can break the trend line or not.
