Key Points
- The New Zealand Dollar managed to break an important resistance at 0.7260 against the US Dollar.
- There was a break above a major bearish trend line with resistance at 0.7240 on the hourly chart of NZDUSD.
- Recently in New Zealand, the Manufacturing sales figure for Q2 2017 was released by Statistics New Zealand.
- The outcome was above the forecast, as there was a rise in sales by 1%.
NZDUSD Technical Analysis
The New Zealand Dollar after trading towards the 0.7170 level against the US Dollar found support and started moving higher. The NZDUSD pair gained pace and was able to move above the 0.7200 handle and the 21 hourly simple moving average.
The pair also cracked a and settled above a major bearish trend line with resistance at 0.7240 on the hourly chart.
The pair traded as high as 0.7324 and currently correcting. It remains supported on the downside near the 23.6% and 38.2% Fib retracement level of the last wave from the 0.7214 low to 0.7324 high.
New Zealand Manufacturing Sales
Today in New Zealand, the Manufacturing sales figure for Q2 2017 was released by Statistics New Zealand. The market was positioned for a minor rise of 0.5% in sales compared with the last decline of 0.3%.
The actual result was above the forecast, as there was a rise in sales by 1%. The most important thing was a solid increase of 8.2% in the meat and dairy product manufacturing volume in Q2 2017. The report added that:
Sales values were also up 13 percent, reflecting increases in both meat and dairy product prices. Business Price Indexes reported a 3.4 percent rise in dairy product manufacturing output prices in the June 2017 quarter.
Overall, the NZDUSD pair is back in the bullish zone and remains buy on dips near the 0.7280 level.
