NZDUSD Nosedives Post Miss in Card Sales11 May, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, NZDUSD, Technical Analysis
- New Zealand dollar fell sharply during the Asian session due to disappointing domestic economic data.
- New Zealand Electronic Card Retail Sales as reported by Statistics New Zealand decreased by 0.7% in April 2015, compared with the forecast of a 0.6% rise.
- NZDUSD breached an important support area of 0.7420-00, which might now act as a resistance.
New Zealand Electronic Card Retail Sales
Earlier during the Asian session, the New Zealand Electronic Card Retail Sales, which measures purchases made in New Zealand on debit, credit and store cards was reported by Statistics New Zealand. The forecast was lined up for an increase of 0.6% in April 2015, compared to the preceding month.
The outcome was well below the forecast, as the New Zealand Electronic Card Retail Sales registered a decline of 0.7% which was also lower compared with the last increase of 0.8%. Moreover, the Core retail spending i.e. excluding the vehicle-related industries declined by 0.8% in April 2015.
Considering the year-over-year change, it managed to impress with a rise of 3.9%, 0.2% higher compared with the last gain. Commenting on the report, the business indicators manager, Neil Kelly, stated that “After removing seasonal effects, spending fell in four of the six retail industries. The largest fall came from the durables industry.”
NZDUSD – Technical Analysis
The New Zealand dollar weakened a lot during the past couple of hours against the US Dollar, and traded below the 0.7420-00 support area. There is a bearish trend line on the hourly chart of the NZDUSD pair, which acted as a barrier for buyers and ignited a downside move.
Currently, the pair is near the 1.618 Fib retracement extension of the last wave of the 0.7420 low to 0.7499 high. There is a possibility that the pair might correct a bit higher from the current levels, but the broken support area of 0.7420 could act as a hurdle in the near term.
On the downside, a break below 0.7370 might call for more losses in NZDUSD moving ahead.
US Labor Market Conditions Index
Today, the US labor market conditions index (LMCI), which is a primary source of common variation among 19 labor market indicators will be released. The last reading was -0.3, so any rise in the index might push the US Dollar higher in the short term.