Key Points
- The New Zealand Dollar surged higher recently and broke a major resistance near 0.6980.
- The NZDUSD pair also broke a bearish trend line with resistance at 0.6950 on the hourly chart.
- Today in New Zealand, the Business NZ PMI for April 2017 was released by the Business NZ.
- The outcome was above the forecast, as there was a rise from the last revised reading of 55.7 to 57.8.
NZDUSD Technical Analysis
The New Zealand Dollar made a nice upside move after trading as low as 0.6909 against the US Dollar. During the upside move, the NZDUSD pair broke the 21 hourly simple moving average and a bearish trend line with resistance at 0.6950 on the hourly chart.
Later, it managed to break the 61.8% Fib retracement level of the last decline from the 0.6981 high to 0.6909 low. It opened the doors for more gains and the pair also cleared the swing high and important resistance at 0.6980.
It traded as high as 0.7003, and currently correcting lower. Any dips from the current levels may now find support on the downside at 0.6680 and 0.6960.
Business NZ PMI
Recently in New Zealand, the Business NZ PMI for April 2017 was released by the Business NZ. The forecast was lined up for a minor rise in the PMI in April 2017 from the last reading of 55.2.
However, the result was above the forecast, as there was a rise to 57.8. The last reading was also revised up from 55.2 to 55.7. The report stated that “This was 2.1 points higher than February, and the highest level of expansion since January 2016. Overall, the sector has remained in expansion in almost all months since October 2012”.
Overall, the result was positive, and may keep the NZDUSD pair above the 0.6980 support for more gains in the near term.
