NZDUSD – Can Kiwi Dollar Surpass 0.7160 Resistance Vs USD?07 December, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, NZDUSD, Technical Analysis
NZDUSD – Can Kiwi Dollar Surpass 0.7160 Resistance Vs USD?
- The New Zealand Dollar managed to stay in an uptrend against the US Dollar with support at 0.7080.
- There is a crucial bullish trend line formed on the 4-hours chart of NZDUSD, which may act as a support if the pair moves down.
- The pair is well above the 100 simple moving average on the same chart, which is a positive sign.
- The New Zealand Manufacturing sales, released by Statistics New Zealand posted a mixed reading in Q3 2016.
NZDUSD Technical Analysis
The New Zealand dollar after finding bids near 0.7080 against the US Dollar traded higher. The NZDUSD pair is currently trading with positive bias, and remains supported on the downside.
At the moment, the 200 simple moving average is acting as a resistance on the 4-hours chart. A downside move may take the pair towards a crucial bullish trend line formed on the same chart, which could provide support.
On the upside, the pair found sellers many times near 0.7160. So, a break above it is needed for further gains. If the NZDUSD pair keeps finding buyers near the trend line support, there is a chance of a break above 0.7160 for a move towards 0.7200.
New Zealand Manufacturing Sales
Today in New Zealand, there was a low-risk event, as the Manufacturing sales, which highlight changes in the volume of the physical output of the nation’s factories, mines and utilities was released by Statistics New Zealand.
The market was aligned for an increase of about 2% in Q3 2016. However, the result failed to fulfill the expectation, which weighed on the kiwi dollar in the short term.
Australia’s Gross Domestic Product
Today in Australia, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by Australia was released by the Australian Bureau of Statistics.
The market was aligned for the GDP to post 0.5% growth in Q3 2016, compared with the previous quarter. However, the result was opposite, as there was a decrease of 0.5%. In terms of the yearly change, there was a rise of 1.8% in Q3 2016, compared with the same quarter a year ago.
Overall, the market sentiment failed to help the Kiwi and Aussie dollar. However, the trend line for NZDUSD remained intact and may play a major role.