Key Points
- The New Zealand dollar remained in an uptrend against the US Dollar and looks poised for more gains.
- There is a major bullish trend line formed on the hourly chart of NZDUSD, which may act as a support on the downside at 0.7080.
- Today in New Zealand, the ANZ Commodity Price was released by the ANZ National Bank.
- There outcome was mixed, as there was an increase of 2.7% in Nov 2016, compared with the last reading of 0.7%.
NZDUSD Technical Analysis
The New Zealand Dollar managed to stay above the 0.7050 support area against the US dollar, and traded higher. There is a major bullish trend line formed on the hourly chart of NZDUSD, which is holding the current bullish trend near 0.7080.
As long as the pair is above the trend line, it may continue to gain momentum. The NZD buyers need to break the 61.8% Fib retracement level of the last drop from the 0.7148 high to 0.7069 low for further gains.
The only bearish sign is the fact that the hourly RSI is struggling to regain the 50 level.
New Zealand 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 major increase in Nov 2016, compared with the last reading of 0.7%. However, the result was mixed, as there was a rise of 2.7%. The report stated that “Dairy prices rose 4.8% m/m in November, the sixth rise in a row. Tight global milk supplies and Chinese import demand continued this month. Whole milk powder rose 11% m/m (31% y/y), butter 3.1% and skim milk 0.8%. The index uses USDA prices, where price gains were smaller than those registered on the GlobalDairyTrade platform (i.e. WMP +24% in November)”.
Overall, the NZDUSD pair remains supported on the downside, and any dips towards 0.7080 may be considered as a buying opportunity.
