Key Points
- The New Zealand dollar was in an uptrend against the US Dollar until it found sellers near 0.7240.
- There were two bullish trend lines formed on the hourly chart of NZDUSD, which were broken at 0.7200 during the downside move.
- Today in New Zealand, the Business NZ PMI was released by the Business NZ.
- The result was on the lower side, as there was a decline from the last revised reading of 55.1 to 54.4 in Dec 2016.
NZDUSD Technical Analysis
The New Zealand dollar enjoyed good gains against the US Dollar until the fed interest rate decision, which ignited a downside move. The NZDUSD pair failed to break the 0.7240 level and declined.
During the downside move, the NZDUSD pair broke two bullish trend lines formed on the hourly chart at 0.7200. It ignited a move below the 21 hourly simple moving average.
The pair is currently trading near the 1.236 extension of the last wave from the 0.7112 low to 0.7241 high at 0.7082. Soon, it may break it for further losses.
Business NZ PMI
Today in New Zealand, the Business NZ PMI, which presents business conditions in New Zealand was was released by the Business NZ. The market was not expecting any major decline in Dec 2016.
The result was mixed, as there was a decline from the last revised reading of 55.1 to 54.4 in Dec 2016. The report added that the “seasonally adjusted PMI for November was 54.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.7 points lower than October, and the lowest level of expansion since October 2015. The sector remains solidly in expansion in almost all months since October 2012”.
Overall, the US Dollar had an upper hand vs the NZ dollar, and it may trade towards 0.7050 in the short term.
