NZDJPY Might Attempt For a New Low30 June, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis
- New Zealand Dollar continued to move lower against most major currencies, including the US Dollar and the Japanese Yen.
- NZDJPY looks like heading towards the last low of 82.83, and might create a new low moving ahead.
- New Zealand Building Permits figure released by the Statistics New Zealand posted no change in May 2015, compared with the preceding month.
- Business Confidence released by the ANZ came in at -2.3 in May 2015, compared with the last reading of 15.7.
NZDJPY Technical Analysis
The New Zealand Dollar recently traded above 84.00 against the Japanese Yen, but failed to trade above 84.20, as there is a bearish trend line formed on the hourly chart of NZDUSD that prevented gains. Moreover, the 50% Fib retracement level of the last drop from the 85.66 high to 82.30 low was also around the same trend line. Overall, there was a lot of bearish pressure visible on the NZDJPY pair, which increases the chances of it trading lower in the near term. The hourly RSI is well below the 50 level, signaling the fact that sellers are in control.
Let us see whether the pair can correct higher or creates a new low moving ahead. On the upside, the highlighted trend line might continue to play an important role for more gains.
New Zealand Building Permits
Earlier during the Asian session, there were a few releases lined up in New Zealand. First, the Building Permits, which calculates the number of permits for new construction projects was released by the Statistics New Zealand. The forecast was of an increase in May 2015, compared with the preceding month. However, the outcome was not as expected, as there was no change in the number of permits in May 2015.
Commenting on the report, the business indicators manager, Neil Kelly, stated that “Canterbury dwelling consents more than tripled between 2011 and 2014, but have been decreasing since then”.
Moreover, the Business Confidence that shows the business outlook in New Zealand was released by the ANZ. The result was disappointing, as the Business Confidence dipped from 15.7 to -2.3 in May 2015. The New Zealand Dollar was under pressure after all events during the Asian session.