Key Points
- The New Zealand Dollar declined recently and moved below 0.7420 against the US Dollar.
- There is a short-term bearish trend line with resistance at 0.7425 forming on the hourly chart of NZDUSD.
- Today in New Zealand, the ANZ Commodity Price for July 2017 was released by the ANZ National Bank.
- The outcome was below the forecast, as there was a decline of 0.8% compared with the last +2.1%.
NZDUSD Technical Analysis
The New Zealand Dollar after trading above the 0.7540 level against the US Dollar found sellers and started a downside move. The NZDUSD pair declined below the 0.7500 handle and the 21 hourly simple moving average to set a short-term downtrend.
The pair even broke a bullish trend line at 0.7495 on the hourly chart and traded towards the 0.7400 handle. After trading as low as 0.7391, the pair started a correction.
On the upside, an initial resistance is near the 23.6% Fib retracement level of the last decline from the 0.7459 high to 0.7391 low. Moreover, there is a short-term bearish trend line with resistance at 0.7425 forming on the hourly chart.
ANZ Commodity Price
Today in New Zealand, the ANZ Commodity Price for July 2017 was released by the ANZ National Bank. The market was positioned for a minor rise in the index compared with the last increase of 2.1%.
The actual result was below the forecast, as there was a decline of 0.8% compared with the last +2.1%. The report added that:
The strong NZD/USD weighed further with local returns down 2.1% m/m, but they are still 18% higher than 12 months’ prior Dairy prices increased 1.4% m/m in July (+45% y/y).
Overall, the NZDUSD pair may continue to face sellers near 0.7425-30 in the short term and most likely to break the 0.7390 low.
