Key Points
- The New Zealand Dollar traded higher vs the US Dollar, and it looks set for more gains.
- There is a contracting triangle pattern formed on the hourly chart of the NZDUSD pair, which is acting as a catalyst.
- In New Zealand, the ANZ Commodity Price was released by the ANZ National Bank.
- As per the report, there was an increase of 1% in the ANZ Commodity Price in May 2016.
Technical Analysis
The New Zealand dollar enjoyed a decent ride vs the US Dollar recently, and managed to trade above the 0.6800 resistance area. The pair also managed to close above the 50 hourly simple moving average, which is a positive sign.
There is a contracting triangle pattern formed on the hourly chart of the NZDUSD pair, which may act as a reason for the next move in the short term.
On the upside, a break above the triangle trend line may push the pair towards the next resistance area of 0.6860.
ANZ Commodity Price
Today in New Zealand, the ANZ Commodity Price, which is considered as an early indicator of export price changes was released by the ANZ National Bank. The market was not expecting any rise in prices in May 2016. However, the ANZ Commodity Price increased 1%.
The report added that the “In recent months, prices look to have found a floor that they are now bouncing along. Horticulture prices lifted (+6.2%) in the month with the start of new season crop sales. There were also lifts for seafood (+1.1%), forestry (+0.9%) and meat (+1.5%), making the gains broad-based“.
No doubt, the market is favoring more gains in the NZDUSD pair, which may take it towards the 0.6860 level.
