Key Points
- The New Zealand dollar after trading as low as 0.6862 against the US Dollar, traded higher.
- There was a bearish trend line formed on the hourly chart of NZDUSD, which was broken at 0.6900 to ignite more gains.
- Recently in the US, the Dallas Fed Texas Manufacturing Outlook index was released by the Federal Reserve Bank of Dallas.
- The result was better, as there was an increase from the last reading of 10.2 to 15.5 in Dec 2016.
NZDUSD Technical Analysis
The New Zealand dollar declined recently towards the 0.6860 support zone against the US Dollar where it found buyers. There was an upside, taking the NZDUSD pair above the 0.6900 level, and a bearish trend line formed on the hourly chart.
Moreover, the pair also closed above the 21 hourly simple moving average, which is a positive sign for the NZD buyers.
There can be a minor dip in NZDUSD back towards the 21 hourly SMA, which can be a buying opportunity with a proper stop.
Dallas Fed Texas Manufacturing Outlook Index
Recently in the US, the Dallas Fed Texas Manufacturing Outlook Survey Index, which is a timely assessment of the state’s factory activity asked by the Federal Reserve Bank of Dallas was released.
The market was positioned for no major increase in the index from 10.2 in Dec 2016. However, the result was better, as there was an increase from the last reading of 10.2 to 15.5 in Dec 2016. The report stated that “Texas factory activity increased for the sixth consecutive month in December, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rose five points to 13.8, suggesting faster output growth this month.”
The result was positive, but the market sentiment was in favor of more gains in NZDUSD, which may continue in the short term.
