- The New Zealand Dollar fell sharply this past week and moved towards 0.6810 against the US Dollar.
- The NZDUSD pair started a recovery, and now forming a contracting triangle with resistance at 0.6880 on the hourly chart.
- The New Zealand Retail Sales for Q1 2017 released by the Statistics New Zealand posted an increase of 1.5%, more than the forecast of 0.9%.
NZDUSD Technical Analysis
The New Zealand Dollar was under heavy pressure after the RBNZ rate decision and fell by more than 60 pips to trade towards 0.7810 against the US Dollar. The NZDUSD pair traded as low as 0.6816 and formed a base for an upside move.
The pair is currently correcting higher, and already moved above the 38.2% Fib retracement level of the last decline from the 0.6953 high to 0.6816 low.
At the moment, the pair is approaching a major resistance near 0.6880-0.6900.
NZDUSD Hourly Chart
There is a contracting triangle formed with resistance at 0.6880 on the hourly chart, which may play a major role.
Above the triangle resistance, the 50% Fib retracement level of the last decline from the 0.6953 high to 0.6816 low is at 0.6883.
So, once there is a break above 0.6880-85, there are chances of NZDUSD breaking 0.6900 for further upsides in the near term. On the downside, the triangle support is at 0.6860, which can be seen as a buy zone.
New Zealand Retail Sales
Today in New Zealand, the Retail Sales for Q1 2017 was released by the Statistics New Zealand. The market was expecting an increase of 0.9% in sales in Q1 2017, compared with the previous quarter.
The actual result was better than the forecast, as the Retail Sales grew 1.5%. Also, the Retail Sales ex Autos posted a solid increase of 1.2%, more than the last 0.6%.
Commenting on the data, the senior business indicators manager, Neil Kelly, stated:
Car sales have shown consistent growth over the past year, with higher sales of both new and used vehicles in a buoyant market. The demand for cars may reflect New Zealand’s growing population, with net migration remaining at record levels into 2017, and the relatively low cost of new vehicles.
Overall, the result was better, and might push NZDUSD above 0.6880 and even 0.6900 in the near term.