NZDUSD – New Zealand Dollar Bearish Bias Intact Vs US Dollar11 October, 2016 by Aayush Jindal in Market Analysis, NZDUSD, Technical Analysis
NZDUSD – New Zealand Dollar Bearish Bias Intact Vs US Dollar
- The New Zealand dollar declined heavily versus the US Dollar, and closed below 0.7200.
- There was a triangle pattern formed on the 4-hours chart of NZDUSD, which was broken to ignite a move below 0.7200.
- Today, the New Zealand Electronic Card Retail Sales reported by Statistics New Zealand posted a rise of 1.9% in Sep 2016.
- In terms of the yearly change, the New Zealand Electronic Card Retail Sales came in at +6.1%.
NZDUSD Technical Analysis
The New Zealand dollar was under heavy bearish pressure and declined below a major support area of 0.72000 versus the US Dollar. Going forward, we may witness more losses in NZDUSD.
The pair recently broke a triangle pattern formed on the 4-hours chart, which ignited a sharp downside reaction, taking it towards 0.7100. The pair attempted a correction once, but failed to break the 38.2% Fib retracement level of the last drop from the 0.7310 to 0.7110 low.
Looking at the technical indicators, it looks like the pair is in a downtrend, and may continue to decline in the near term.
New Zealand Electronic Card Retail Sales
Today in New Zealand, the Electronic Card Retail Sales, which measures purchases made in New Zealand on debit, credit and store cards was reported by Statistics New Zealand.
The market was not expecting any increase in sales in Sep 2016, compared with the previous month. However, the result was positive, as there was a rise of 1.9%. In terms of the yearly change, there was an increase of 6.1% in the sales in Sep 2016, compared with the same month a year ago.
The report published stated that “Total retail spending using electronic cards was $4.7 billion in September 2016, up $274 million (6.1 percent) from September 2015. The largest increase came from the hospitality industry, up $123 million (16 percent). Core retail spending (which excludes the vehicle-related industries) increased 2.3 percent in September 2016, after a 1.4 percent decrease in August. This is the biggest percentage increase since January 2006.”
Overall, the report was positive, but it is unlikely to help the kiwi dollar in the near term. The market sentiment is bearish for the NZDUSD pair, and it may continue to weigh on the bulls.