Key Points
- The New Zealand dollar traded higher versus the US Dollar and looks set for more gains.
- There is a crucial bullish trend line formed on the hourly chart of the NZDUSD pair, which can be seen as a buy area.
- In New Zealand, the Terms of Trade Index was released by the Statistics New Zealand earlier today.
- The outcome was negative, as there was a decline of 2.1%, more than the market expected in Q2 2016.
NZDUSD Technical Analysis
The New Zealand Dollar after trading as low as 0.7200 against the US Dollar found support and traded higher. There is a major bullish trend line formed on the hourly chart of the NZDUSD pair, which is acting as a support and taking the pair higher.
If the pair corrects lower from the current levels, then the trend line support may act as a barrier for sellers.
One may even consider buying NZDUSD as long as it is above the trend line and look for a move towards the 0.7280 level.
New Zealand Terms of Trade Index
Today during the Asian session, the Terms of Trade Index, which is a measure of balance amount between import and export was released by the Statistics New Zealand.
The forecast was lined up for a decline of 2% in Q2 2016. However, the outcome was lower, as there was a decline of -2.1%. The report added that “Dairy products made the largest contribution to the rise in export volume, with the seasonally adjusted volume up 13 percent. The volume for dairy is at its highest level since the September 2012 quarter, when 832,000 tones of dairy was exported. Meat, forestry, and fruit export volumes also rose this quarter“.
Overall, the New Zealand dollar may not be impacted and could continue to move higher going forward.
