Key Points
- The New Zealand dollar was seen struggling against the US dollar recently, and may continue to weaken.
- There are a couple of bearish trend lines formed on the hourly chart of the NZDUSD pair, which are acting as a resistance.
- The New Zealand Consumer Price Index was released by the Statistics New Zealand earlier today.
- The result was disappointing, as the increase in the CPI was less than the market forecast.
Technical Analysis
The New Zealand dollar was under a lot of bearish pressure against the US Dollar recently, as it traded below the 0.7120 support area. There are a couple of bearish trend lines formed on the hourly chart of the NZDUSD pair, which are acting as a hurdle for more gains.
As long as the pair is below the highlighted trend line and resistance area, it may continue to decline in the near term.
The NZDUSD pair is also below the 21 hourly simple moving average, which is a bearish sign.
New Zealand CPI
Earlier during the Asian session today, there was a major release in New Zealand, which impacted the NZDUSD pair. The Consumer Price Index was reported by the Statistics New Zealand. The result was not as the market expected, as the rise in the CPI was 0.4% in Q2 2016, compared with the forecast of 0.5%.
The report stated that “Petrol prices showed the largest upward contribution, up 5.3 percent in the June 2016 quarter. This follows falls of 7.7 percent in the March 2016 quarter and 7.0 percent in the December 2015 quarter. The average price of 1 litre of 91 octane petrol was $1.78 in the June 2016 quarter, up from $1.69 in the March 2016 quarter“.
Overall, the New Zealand dollar declined and may remain under a bearish pressure against the US Dollar.
