NZD/USD – Monster Bullish Break Sighted For NZD on Weekly Chart15 June, 2017 by Aayush Jindal in Market Analysis
- The New Zealand Dollar after forming a base near 0.6850 against the US Dollar started an uptrend.
- The NZD/USD pair has cleared two important bearish trend lines on the weekly chart at 0.7150 to signal a major bullish trend.
- Today in New Zealand, the Gross Domestic Product for Q1 2017 released by the Statistics New Zealand posted an increase of 0.5%.
- In the US, the Initial Jobless Claims (June 9, 2017) will be released by the US Department of Labor today, which is forecasted to decrease from 245K to 242K.
NZDUSD Technical Analysis
Looking at the big picture, the New Zealand Dollar might have turned bullish above the 0.7150 level versus the US Dollar. The NZDUSD broke many barriers near 0.7150 to set the current uptrend.
On the downside, the pair formed a solid base above 0.6850 before starting an upside move. It recently cleared two important bearish trend lines on the weekly chart at 0.7150.
Additionally, the pair has almost surpassed the 38.2% Fib retracement level of the last decline from the 0.8835 high to 0.6189 low.
These all are positive signs, and suggest further gains in NZDUSD above 0.7200. The next hurdle could be near the 50% Fib retracement level of the last decline from the 0.8835 high to 0.6189 low at 0.7500.
The overall trend seems to be bullish with supports on the downside at 0.7150 and 0.7000.
New Zealand Gross Domestic Product
Today in New Zealand, the Gross Domestic Product for Q1 2017 was released by the Statistics New Zealand. The market forecast was an increase of 0.7% in Q1 2017, compared with the previous quarter.
The actual result was on the lower side, as the GDP grew by only 0.5%. In terms of the yearly change, the GDP increased 2.5%, less than the forecast of 2.7%. The report stated:
Agriculture grew 4.3 percent due to higher milk production. This flowed through to higher dairy product manufacturing, which contributed to the overall rise in food, beverage, and tobacco product manufacturing. Dairy exports fell 11 percent in the March 2017 quarter, resulting in a build-up in dairy inventories.
The GDP release weighing on the NZD/USD pair, but it is still above the bearish trend lines at 0.7150.
Economic Releases to Watch Today
- SNB Interest Rate Decision – Forecast -0.75%, versus -0.75% previous.
- UK Retail Sales for May 2017 (YoY) – Forecast +1.7%, versus +4% previous.
- UK Retail Sales for May 2017 (MoM) – Forecast -0.8%, versus +2.3% previous.
- BoE Interest Rate Decision – Forecast 0.25%, versus 0.25% previous.
- US Import Price Index May 2017 (MoM) – Forecast -0.1%, versus +0.5% previous.
- US Export Price Index May 2017 (MoM) – Forecast +0.1%, versus +0.2% previous.
- US Initial Jobless Claims – Forecast 242K, versus 245K previous.
- US Industrial Production May 2017 (MoM) – Forecast 0.2%, versus 1% previous.