NZDUSD – New Zealand Dollar Targets Fresh Highs23 August, 2016 by Aayush Jindal in Market Analysis, NZDUSD, Technical Analysis
NZDUSD – New Zealand Dollar Targets Fresh Highs
- The New Zealand dollar remains in an uptrend against the US dollar, and looks set for more gains.
- There is a monster bullish trend line on the 4-hours chart of the NZDUSD pair, providing support to the buyers.
- Today during the Asian session, the MNI China Business Sentiment Indicator was released.
- It registered a decline from the last reading of 55.5 to 54.3 in August 2016.
NZDUSD Pair Technical Analysis
The New Zealand dollar continued to remain in the bullish zone versus the US Dollar, and it looks like the NZDUSD pair be positioning for a new weekly high above 0.7340.
The pair is supported on the downside. First, there is a monster bullish trend line on the 4-hours chart. Second, the 100 and 200 simple moving averages are also below the same trend line. So, we can say that there is a major support on the downside at 0.7260-20.
As long as the pair is above the stated support area, there are chances of further gains in the near term. The pair may even head towards the 1.236 extension of the last wave from the 0.7342 high to 0.7164 low.
MNI China Business Sentiment Indicator
Earlier today during the Asian session, the MNI China Business Sentiment Indicator which is based on a monthly poll of Chinese business executives, tracks and predicts Chinese economic conditions, and provides important information ahead of official government data was published.
The forecast was slated for no major change from the last reading of 55.5 in August 2016. However, there was a decline noted from the last reading of 55.5 to 54.3.
The market sentiment was not affected much after the release, as the New Zealand dollar remained in the bullish zone against the US Dollar.
US Manufacturing PMI
Today in the US, the Manufacturing Purchasing Managers Index (PMI), which captures business conditions in the manufacturing sector will be released by the Markit Economics.
The forecast is slated for a decline from the last reading of 52.9 to 52.7 in August (preliminary reading). If the outcome disappoints, then it could help the New Zealand dollar to remain in an uptrend. Otherwise, there is a chance of a minor correction in the short term.