Key Points
- The New Zealand Dollar made a nice upside move recently and traded towards 0.7370 against the US Dollar.
- There is a major bullish trend line with support as 0.7300 forming on the hourly chart of NZDUSD.
- Today in New Zealand, the Business NZ PMI for June 2017 was released by the Business NZ.
- The outcome was below the forecast, as there was a decline in the PMI from the last revised reading of 58.2 to 56.2.
NZDUSD Technical Analysis
The New Zealand Dollar made a nice upside move and broke the 0.7300 barrier against the US Dollar. The NZDUSD pair traded above the 0.7350 resistance and the 21 hourly simple moving average to trade as high as 0.7368.
Later, the pair started a correction and traded below the 23.6% Fib retracement level of the last wave from the 0.7246 low to 0.7368 high.
There is a major bullish trend line with support as 0.7300 forming on the hourly chart. It coincides with the 50% Fib retracement level of the last wave from the 0.7246 low to 0.7368 high and the 21 hourly simple moving average. So, the pair is likely to hold 0.7300-20 and bounce back in the near term.
Business NZ PMI
Today in New Zealand, the Business NZ PMI for June 2017 was released by the Business NZ. The market was positioned for no major decline in the PMI from the last reading of 58.5.
The actual result was below the forecast, as there was a decline in the PMI to 56.2. The last reading was also revised down from 58.5 to 58.2. However, the overall result was positive, as there was a solid expansion with reading above 55.0. The report added that:
This was 2.0 points lower than May, and similar to expansion levels seen in April. Overall, the sector has remained in expansion in all months since October 2012.
Overall, the NZDUSD pair remains supported on the downside near 0.7300 and may continue to move higher.
