Key Points
- The New Zealand Dollar after a drop towards 0.7245 found support against the US Dollar.
- There is a major bullish trend line with current support at 0.7260 forming on the hourly chart of NZDUSD.
- Recently in New Zealand, the Westpac Consumer Confidence for Q3 2017 was released by Westpac New Zealand.
- The outcome was below the forecast, as there was a minor decline from the last reading of 113.4 to 112.4.
NZDUSD Technical Analysis
The New Zealand Dollar after trading as high as 0.7344 found sellers against the US Dollar and started a downside correction. The NZDUSD pair traded below the 0.7300 handle and the 21 hourly simple moving average to form a low at 0.7248.
The downside move found bids near a major bullish trend line with current support at 0.7260 forming on the hourly chart. The pair is now again moving higher and attempting a break of the 0.7280 level and the 21 hourly simple moving average.
The most important resistance on the upside is near 0.7300 and the 50% Fib retracement level of the last decline from the 0.7344 high to 0.7248 low. As long as the pair is above 0.7250, it might continue to move higher.
New Zealand Westpac Consumer Confidence
Recently in New Zealand, the Westpac Consumer Confidence for Q3 2017 was released by Westpac New Zealand. The market was positioned for no major change in the index from the last reading of 113.4.
The actual result was below the forecast, as there was a minor decline from the last reading of 113.4 to 112.4. The report added that:
Looking to the remainder of 2017, we expect that growth will ease off. A key reason for this is that conditions in the housing market have really come off the boil. The August REINZ housing market update showed that sales are down 22% over the past year, and house price growth has essentially stalled.
Overall, the NZDUSD pair remains supported and might trade towards 0.7300 level in the near term.
