Key Points
- The New Zealand dollar fell recently below 0.7080 against the US Dollar to form a downtrend.
- There is a bearish trend line formed on the hourly chart of the NZDUSD pair, acting as a resistance near 0.7050.
- Today in New Zealand, the Business NZ PMI was released by the Business NZ.
- The outcome was better than the last reading, as the PMI came in at 57.7 in Sep 2016.
NZDUSD Technical Analysis
The New Zealand dollar was seen trading lower versus the US dollar, and there was even a break below the 0.7080 support area. Currently, there is a bearish trend line formed on the hourly chart of the NZDUSD pair, which is preventing an upside move near 0.7050.
The 21 hourly simple moving average is also positioned with the highlighted trend line resistance to act as a barrier for the bulls.
On the downside, a break below the last swing low of 0.7035 may open the doors for a move towards the 0.70 handle.
Business NZ PMI
Today in New Zealand, the Business NZ PMI, which presents business conditions in New Zealand was released by the Business NZ. The market was expecting an increase from the last reading of 55.1.
The result was positive, as there was a rise to 57.7 in Sep 2016. The report highlighted that the “seasonally adjusted PMI for September was 57.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 2.5 points up from August, and the highest level of activity in the sector since January this year. The sector remains solidly in expansion in almost all months since October 2012”.
The NZD buyers were not impressed by the outcome, as there was not decreased in the selling pressure for the NZDUSD pair.
