- – The New Zealand Dollar fell sharply recently from the 0.6950 swing high against the US Dollar.
- – The NZD/USD pair traded towards 0.6820 where it found support and currently trading in a range.
- – Today in New Zealand, the Business NZ PMI for April 2017 released by the Business NZ posted a decline from 57.8 for 56.8.
Business NZ PMI
In New Zealand today, the Business NZ PMI for April 2017 was released by the Business NZ. The market was positioned for the Index to post a minor increase from the last reading of 57.8 to 58.00 in April 2017.
However, the result was on the lower side, as the Business NZ posted a decline from 57.8 for 56.8. One of the main components – the PMI index on employment came in at 53.0. It declined from 53.5, but remains strong above its long-term average, of 50.5. Commenting on the report, BusinessNZ’s executive director for manufacturing, Catherine Beard, stated “The April value for new orders (62.4) was only slightly down from the March value, with the combined result of the two months the highest for new order expansion since 2004. While production (56.9) dipped in terms of expansion, the remaining indices remained either stable or increased slightly from March”.
Overall, the NZD/USD pair is likely to remain under pressure, and may even trade below 0.6800 in the near term.
NZD/USD Technical Analysis
The New Zealand Dollar enjoyed good gains earlier this week, trading above 0.6950 against the US Dollar. Later, the NZD/USD pair faced heavy offers, resulting in a sharp downside move below 0.6900. The pair traded as low as 0.6816 where it found support.
The pair attempted a recovery and moved towards the 38.2% Fib retracement level of the last decline from the 0.6939 high to 0.6816 low at 0.6860. The stated level is acting as a resistance and preventing gains above 0.6860.
The pair is currently trading in a range with support around 0.6825. On the upside, a break above 0.6860 could take the pair towards the 50% Fib retracement level of the last decline from the 0.6939 high to 0.6816 low and the 100 simple moving average. However, it is likely to remain under pressure with a chance of a downside break below 0.6800.Tags: New Zealand Dollar, NZD/USD Technical Analysis, US Dollar