Key Points
- The New Zealand dollar recently recovered from the 0.7120-30 support area against the US Dollar.
- However, the NZDUSD pair remains below a major bearish trend line with resistance at 0.7170 on the hourly chart.
- Recently, the New Zealand GDT Price Index was released by Global Dairy Trade.
- The result was mixed, as there was a decline of 3.2%, compared with the last increase of 1.3%.
NZDUSD Technical Analysis
The New Zealand dollar this week traded lower towards 0.7120 against the US Dollar where it found support and started a recovery. The NZDUSD pair is currently below the 21 hourly simple moving average with resistance at 0.7165.
Moreover, there is a crucial bearish trend line with resistance at 0.7170 on the hourly chart, which may act as a hurdle if the pair moves higher.
On the downside, an initial support is at 50% Fib retracement level of the last move from the 0.7129 low to 0.7177 high. It may be broken if sellers gain control for a downside move towards 0.7140. Overall, selling rallies near 0.7170 may be considered with a stop above the trend line resistance.
New Zealand GDT Price Index
In New Zealand, the GDT Price Index was released by Global Dairy Trade. The market was not expecting any major decline in the index this time.
However, the result was mixed, as there was a decline of 3.2%, compared with the last increase of 1.3%. Earlier today, the Chinese housing price index for Jan 2017 was released by the National Bureau of Statistics. The result was in line with the forecast, as there was a change of 12.2%, compared with the last 12.4%.
Overall, the Kiwi dollar has no real reason to break the trend line resistance at 0.7170, which is why NZDUSD may decline once again.
