- – The New Zealand Dollar remained in an uptrend and currently well above the 0.6980 support against the US Dollar.
- – There is an ascending channel with support at 0.7000 formed on the hourly chart of NZD/USD, acting as a support for the current trend
- – Earlier today, the Chinese Gross Domestic Product (GDP) for Q1 2017 (YoY) released by the National Bureau of Statistics of China posted a rise of 6.9%, compared with the last +6.8%.
Chinese Gross Domestic Product
Today in China, the Gross Domestic Product (GDP) for Q1 2017 (YoY) was released by the National Bureau of Statistics of China. The market was positioned for a growth rate of around 6.8% in Q1 2017, compared with the same quarter a year ago.
The outcome was better, as there was an increase of 6.9% in the gross value of all goods and services produced by China in Q1 2017 (YoY). When we look at the quarterly change, there was an increase of 1.3% in Q1 2017, lower than the last +1.7%. So, considering the yearly change, there was an improvement, but the quarterly change disappointed.
Overall, the New Zealand Dollar may remain supported by the risk sentiment, and NZD/USD could trade back towards the 0.7050 level going forward.
NZD/USD Technical Analysis
The New Zealand Dollar remained elevated against the US Dollar, as there was a close above 0.7000. Earlier, the NZD/USD pair was seen struggling to close above 0.7000, but the recent price action was encouraging, and suggests more gains above 0.7000.
The pair recently traded as high as 0.7032 from where there was a tiny correction initiated. The pair is now approaching the 23.6% Fib retracement level of the wave from the 0.6909 low to 0.7032 high. However, the same level also coincides with an ascending channel at 0.7000 formed on the hourly chart.
So, the highlighted ascending channel support at 0.7000 might play a crucial role. The pair is likely to bounce back after testing it. If it fails to hold 0.7000, there is a chance of a move towards the 50% Fib retracement level of the wave from the 0.6909 low to 0.7032 high at 0.6970.
Tags: Chinese Gross Domestic Product, New Zealand Dollar, NZD/USD Technical Analysis, US Dollar