Key Points
- The New Zealand Dollar remained under heavy pressure ad traded below 0.7050 against the US Dollar.
- The NZDUSD pair is currently following a monster bearish trend line with resistance at 0.7020 on the hourly chart.
- Today, the New Zealand Building Permits s.a. for Jan 2017 (MoM) was released by the Statistics New Zealand.
- The result was better than the forecast, as there was a rise of 0.8% in Jan 2017, compared with the last decline of -7.9% (revised).
NZDUSD Technical Analysis
The New Zealand dollar was seen struggling against the US Dollar, as NZDUSD broke the 0.7100 and 0.7050 support levels. The pair made a downside move, and currently remains below a monster bearish trend line with resistance at 0.7020 on the hourly chart.
The highlighted trend line is acting as a major barrier, and pushing the pair down. The 21 hourly simple moving average is also positioned at 0.7050 to act as a resistance.
Any corrections may find sellers near the trend line and the 23.6% Fib retracement level of the move from 0.7169 to 0.7001. More losses below 0.70 are possible if the pressure remains intact.
New Zealand Building Permits
Today in New Zealand, the Building Permits s.a. for Jan 2017 (MoM) was released by the Statistics New Zealand. The market was expecting the number of permits for new construction projects to increase by around 0.5% in Jan 2017, compared with the last decline of 7.9% (revised).
The outcome was better than the forecast, as there was a rise of 0.8% in Jan 2017, compared with the previous month. The report added that “Nationally, the trend for the number of new homes consented has decreased 15 percent in the five months to January 2017, after reaching a 12-year high in August 2016“.
Overall, the New Zealand buyers were not impressed, which is why NZDUSD remains at a risk of a break below 0.7000 in the near term.
