Key Points
- The New Zealand dollar traded lower towards 0.7175 against the US Dollar where it found support.
- The NZDUSD pair is currently correcting higher, but likely to face resistance near 0.7220, 0.7250 and bearish trend lines on the hourly chart.
- Today in New Zealand, the Electronic Card Retail Sales was reported by Statistics New Zealand.
- The result was above the forecast, as there was a rise of 2.7% in Jan 2017, compared with the previous month.
NZDUSD Technical Analysis
The New Zealand dollar dropped recently to trade towards 0.7175 level against the US Dollar. Later, the NZDUSD pair started recovering, and traded towards the 0.7200 resistance and a bearish trend line on the hourly chart.
Moreover, the pair is also facing sellers near the 23.6% fib retracement level of the last decline from the 0.7333 high to 0.7173 low.
A break and close above the 0.7220 resistance could open the doors for a move towards the next bearish trend line at 0.7250. It also coincides with the 38.2% fib retracement level of the last decline from the 0.7333 high to 0.7173 low.
New Zealand Electronic Card Retail Sales
Today during the Asian session, the Electronic Card Retail Sales, which measures purchases made in New Zealand on debit, credit and store cards was reported by Statistics New Zealand. The market was expecting a rise of around 1% in Jan 2017, compared with the previous month.
However, the result was above the forecast, as there was a rise of 2.7% in Jan 2017. The report added that “Retail spending using electronic cards was $5.1 billion in January 2017, up $270 million (5.6 percent) from January 2016. All six retail industries had increases”. The yearly change 5.6% was less than the last reading of 5.8% in Jan 2017.
Overall, the New Zealand dollar may attempt to trade higher in the short term, but likely to face sellers near 0.7250.
