Key Points
- The New Zealand Dollar slowly moved higher after testing the 0.6815 support area against the US Dollar.
- The NZDUSD pair is currently trading above two important bullish trend lines at 0.6870 and 0.6860 on the hourly chart.
- In New Zealand today, the Producer Price Index Input for Q1 2017 was released by the Statistics New Zealand.
- The result was around the forecast, as the Producer Price Index posted a rise of 0.8%, which was below the last 1%.
NZDUSD Technical Analysis
The New Zealand Dollar after a sharp downside move towards 0.6800 found support near 0.6815 and slowly moved higher the US Dollar. The NZDUSD pair moved above the 0.6850 and the 21 hourly simple moving average to gain pace.
On the downside, there are two important bullish trend lines at 0.6870 and 0.6860 on the hourly chart, which are acting as a strong support zones.
The pair recently broke a bearish trend line at 0.6890 and the 50% Fib retracement level of the last decline from the 0.6915 high to 0.6864 low, which is a positive sign.
New Zealand Producer Price Index
Recently in New Zealand, the Producer Price Index Input for Q1 2017 was released by the Statistics New Zealand. The market was expecting an increase of around 0.8% in the index in Q1 2017, compared with the last quarter.
The outcome was around the forecast, as the Producer Price Index posted a rise of 0.8%, which was below the last 1%. Furthermore, the Producer Price Index Output posted an increase of 1.4%, lower than the last 1.5%. The report added that “”In the March 2017 year, prices received by dairy cattle farmers and dairy product manufacturers rose 49 percent and 22 percent, respectively. Farm-gate milk prices increased from $3.90 to $6.00 per kilo of milk solids, and dairy manufacturers received higher prices for milk powder“.
Overall, the NZDUSD may gain pace and move towards the 0.6920 level in the near term as long as the 0.6860 holds.
