NZDUSD – Kiwi Dollar Eyeing More Losses?21 April, 2016 by Aayush Jindal in Fundamental Analysis, Market Analysis, NZDUSD, Technical Analysis
NZDUSD – Kiwi Dollar Eyeing More Losses?
- New Zealand Dollar after setting a short-term top against the US Dollar at 0.7050 started to move down.
- There is a descending channel pattern formed on the hourly chart of the NZDUSD pair, which is acting as a catalyst for the downside move.
- New Zealand Visitor Arrivals released by the Statistics New Zealand posted a reading of 18% in March 2016.
- In the US, the Initial Jobless Claims will be released by the US Department of Labor today, which is forecasted to increase from 253K to 263K.
NZDUSD Technical Analysis
The New Zealand dollar after enjoying a good upside ride against the US Dollar found sellers near 0.7050 and started to move down. There is a currently a descending channel pattern formed on the hourly chart of the NZDUSD pair, which is taking the pair down.
The pair is currently trading near the 100 hourly simple moving average where it may find buyers in the short term. However, there is a chance of the pair breaking it and moving towards the 200 SMA.
On the upside, the channel resistance trend line holds the key, followed by the 0.7000 levels as a hurdle.
New Zealand Visitor Arrivals
Today, the New Zealand Visitor Arrivals, which measures the number of visitors to New Zealand was released by the Statistics New Zealand. The outcome was positive, as the number of visitors to New Zealand rose by 18% in March 2016, compared with the same month a year ago.
The report added that “Visitor arrivals numbered 344,400 in March 2016, with an earlier Easter break helping to produce a new March record, Statistics New Zealand said today. Visitor arrivals were up 52,600 (18 percent) from March 2015, with holidaymakers driving the increase”.
Overall, the result was positive, but it hardly sopped sellers from taking the NZDUSD pair down.
US Initial Jobless Claims
Today, the US Initial Jobless Claims will be released by the US Department of Labor, which is a measure of the number of people filing first-time claims for state unemployment insurance. The forecast is slated for an increase from 253K to 263K. If there is an increase in the claims, then the US Dollar may come under a bearish pressure in the short term.