Key Points
- The New Zealand Dollar collapsed recently towards 0.6850 against the US Dollar where it found support.
- The NZDUSD pair is currently finding it hard to settle above a bearish trend line with resistance at 0.6875 on the hourly chart.
- In New Zealand, the Inflation Expectations for Q2 2017 was released by the Reserve Bank of New Zealand.
- The result was above the forecast, as the Inflation Expectations are 2.2% for the June quarter 2017, compared with the last 1.9%.
NZDUSD Technical Analysis
The New Zealand Dollar faced a lot of sellers recently and moved down below 0.6900 against the US Dollar. However, a major support area at 0.6850-40 came into the picture and prevented losses. It acted as a crucial support and pushed the NZDUSD pair back above 0.6860.
However, the pair is currently finding it hard to settle above a bearish trend line with resistance at 0.6875 on the hourly chart.
Moreover, the 21 hourly simple moving average along with the 38.2% Fib retracement level of the last decline from the 0.6968 high to 0.6839 is also acting as a resistance at 0.6888.
New Zealand Inflation Expectations
Recently in New Zealand, the Inflation Expectations for Q2 2017 was released by the Reserve Bank of New Zealand. The forecast was lined up for the Inflation Expectations to be around 2%, compared with the last 1.9%.
The result was above the forecast, as the Inflation Expectations are 2.2% for the June quarter 2017. The report added that “One-year-ahead inflation expectations have increased to 1.92% from 1.56%. The median also increased to 2.00% from 1.50%. The two-year-ahead expectations had a 0.25 percentage point increase to 2.17% while the median increased to 2.20% from 2.00%”.
Overall, the NZDUSD may soon break the resistance wall at 0.6875-80 for further gains in the near term.
