Key Points
- The New Zealand dollar is gaining momentum above the 0.6840 against the US Dollar.
- There was a break above a major bearish trend line with resistance at 0.6822 on the hourly chart of NZDUSD.
- Recently in New Zealand, the Retail Sales report for Q3 2017 was released by the Statistics New Zealand.
- The outcome was below the market forecast of +0.4%, as there was a rise of 0.3% in Sales (QoQ).
NZDUSD Technical Analysis
The New Zealand dollar made a nice upside move and traded above the 0.6800 resistance against the US Dollar. The NZDUSD pair is now well above the 0.7840 level and the 21 hourly simple moving average, which is a bullish sign.
During the upside, there was a break above a major bearish trend line with resistance at 0.6822 on the hourly chart. The pair recently traded as high as 0.6878 from where a correction wave was initiated. It has already tested the 38.2% Fib retracement level of the last wave from the 0.6804 low to 0.6878 high.
It seems like the pair remains supported above the 0.6850 and 0.6840 levels in the near term.
New Zealand Retail Sales
Recently in New Zealand, the Retail Sales report for Q3 2017 was released by the Statistics New Zealand. The market was looking for an increase of 0.4% in sales in Q3 2017 compared with the previous quarter.
The actual result was below the market forecast of +0.4%, as there was a rise of 0.3% in Sales. This was also lower than the last increase of 2%. The report stated that:
After adjusting for price and seasonal effects, total retail sales volumes rose 0.2 percent with an almost even split of movements over the 15 industries. This quarter’s rise followed a 1.8 percent increase in the June 2017 quarter.
Overall, the NZDUSD pair might correct lower a few pips, but it remains supported above the 0.6840 level.
