Key Points
- The New Zealand dollar recently faced sellers near 0.7220 against the US Dollar, and moved down.
- The NZDUSD pair moved down, but found support near 0.7120, and a bullish trend line on the hourly chart.
- Today in New Zealand, the Business NZ PMI was released by the Business NZ.
- The result was above the forecast, as there was an increase from the last reading of 54.4 to 54.5 in Jan 2017.
NZDUSD Technical Analysis
The New Zealand dollar moved above the 0.7200 level earlier this week against the US Dollar, but later found resistance and traded lower. There was a downside move below the 21 hourly simple moving average, and the pair also moved below the 0.7140 support.
However, the downside was prevented near 0.7120, and a bullish trend line on the hourly chart. The pair is now back trading higher, and attempting to close back above the 0.7140 level.
If there is a close above 0.7150, the pair may gain more strength towards the 0.7170 and 0.7200 levels. One may consider buying as long as the pair is above the trend line support at 0.7120.
Business NZ PMI
Earlier during the Asian session, the Business NZ PMI, which presents business conditions in New Zealand was released by the Business NZ.
The market was positioned for no major increase in Jan 2017, compared with the last reading of 54.4. The result was above the forecast, as there was an increase from the last reading of 54.4 to 54.5 in Jan 2017. The report added that “Activity in the manufacturing sector over 2016 averaged out at 56.0. This was up from 54.2 in 2015, but interestingly the same result as both 2014 and 2013. Overall, this shows how consistent and positive activity has been for the sector over the last few years”
Overall, the outcome was positive, and may lift the market sentiment for the NZDUSD pair in the short term, and take it towards 0.7200.
