NZDUSD – Can New Zealand Dollar Remain In Uptrend Vs USD?21 October, 2016 by Aayush Jindal in Market Analysis, NZDUSD, Technical Analysis
NZDUSD – Can New Zealand Dollar Remain In Uptrend Vs USD?
- The New Zealand Dollar moved below the 0.7200 support area recently against the US Dollar.
- There was a new weekly high formed at 0.7265 in the NZDUSD pair, where the sellers appeared.
- The pair then broke a bullish trend line formed on the hourly chart.
- The New Zealand Visitor Arrivals released by the Statistics New Zealand today posted a rise of 13% in Sep 2016.
NZDUSD Technical Analysis
The New Zealand Dollar enjoyed decent gains this week, as it broke the 0.7180 resistance area against the US Dollar, but could not sustain the momentum. Can the NZDUSD pair recover going forward?
As mentioned, there was a weekly high formed at 0.7265 where sellers appeared and pushed the pair down. The downside accelerated when the pair broke a bullish trend line formed on the hourly chart.
The pair is currently finding bids near the 100 hourly simple moving average, but it looks like it has formed a bearish trend. So, there is a chance of it moving down further towards the 0.7120 level.
New Zealand Visitor Arrivals
Today in New Zealand, the Visitor Arrivals, which measures the number of visitors to New Zealand was released by the Statistics New Zealand. The market was expecting an increase of more than 5% in Sep 2016, compared with the same month a year ago.
However, the result was on the positive side, as there was a rise of 13% in Sep 2016. The report added that a “record 70,000 more migrants arrived than departed in the September 2016 year. This surpasses the previous annual record net gain of 69,100 migrants in the August 2016 year.”
The NZD buyers were not impressed by the outcome, and as a result, there are very less chances of a recovery.
Canadian Consumer Price Index
Today in the US, there is no major economic release scheduled, but in Canada, the Consumer Price Index (CPI), which is a measure of price movements by the comparison between the retail prices will be reported by the Statistics Canada.
The forecast is slated for a rise of 1.5% in the CPI in Canada in Sep 2016, compared with the same month a year ago. It is more than the last increase of 1.1%. So, the market is expecting a better reading, which is fails may put pressure on the Canadian dollar buyers in the short term.