- The New Zealand Dollar after a decline towards 0.7260-70 against the US Dollar found support.
- There is a crucial trend line confluence area formed near 0.7345-55 on the hourly chart of NZD/USD.
- Today in New Zealand, the Consumer Price Index for Q2 2017 was released by the Statistics New Zealand.
- The result was on the lower side, as there was no change in the CPI compared with the previous quarter.
NZD/USD Technical Analysis
The New Zealand Dollar maintained a bullish tone above 0.7210 against the US Dollar, and traded above the 0.7250 resistance. Recently, the NZD/USD pair corrected lower after disappointing CPI release in New Zealand.
However, the downside was limited and supported by 0.7260-70, and the pair soon recovered from its losses.
Before the downside move, the pair broke a bullish trend line at 0.7355 to open the gates for short-term losses.
NZD/USD Hourly Chart
The pair is trading higher, but faces a crucial trend line confluence area formed near 0.7345-55 on the hourly chart.
It has already struggled on many occasions to break and settle above 0.7360, and it seems like it won’t be easy for buyers to take the pair towards 0.7400 in the near term.
On the downside, an initial support is around the 38.2% Fib retracement level of the last wave from the 0.7259 low to 0.7346 high. Buying dips may be considered as long as the pair is above 0.7280.
New Zealand Consumer Price Index (CPI)
Today in New Zealand, the Consumer Price Index for Q2 2017 was released by the Statistics New Zealand. The market was expecting an increase of 0.2% in the CPI in Q2 2017, compared with the previous quarter.
The actual result was on the lower side, as there was no change in the CPI. In terms of the monthly change, there was an increase of 1.7%, which was also lower than the forecast of +1.9% and down from the last +2.2%.
Commenting on the same, the prices senior manager, Jason Attewell, stated:
Household basics like rent, food, and electricity all hit consumers’ pockets harder this quarter. Offsetting these price rises were falls in domestic airfares and petrol prices – which fell on average by 4 cents a litre.
Overall, the NZD/USD pair is back trading higher, but it may struggle to clear the 0.7360 resistance zone in the near term.