- – The New Zealand Dollar after consolidating above the 0.7055-60 support against the US Dollar started an upside move.
- – There was a break above a major bearish trend line with resistance at 0.7075 on the hourly chart of the NZDUSD pair.
- – Today in New Zealand, the Food Price Index (FPI) for Sep 2017 was released by the Statistics New Zealand.
- – The outcome was below the forecast of 0.5%, as there was a decline in the index by 0.2% (MoM).
New Zealand Food Price Index
Today in New Zealand, the Food Price Index (FPI) for Sep 2017 was released by the Statistics New Zealand. The market was looking for an increase of around 0.5% in the index compared with the previous month.
The actual result was below the forecast of 0.5%, as there was a decline in the index by 0.2%. It was disappointing compared with the last increase of +0.6%. The report added that:
The average price of $5.39 for a cheapest available 500g block was up 51 cents on July and up $2.07 (62 percent) on August 2016. The annual butter price increase is the largest in percentage terms since 2010.
Overall, the NZD/USD pair might extend the recent gains if buyers are able to push the pair above the 0.7120 resistance.
NZD/USD Technical Analysis
The New Zealand Dollar after a sharp decline from the 0.7200-0.7210 swing high against the US Dollar found support above 0.70501. The NZD/USD pair consolidated for some time above the 0.7055-60 support before forming a base for an upside move.
The pair started trading higher and broke a major bearish trend line with resistance at 0.7075 on the hourly chart. Buyers also succeeded in clearing the 100 hourly simple moving average and the 23.6% Fib retracement level of the last decline from the 0.7204 high to 0.7056 low.
At the moment, the pair is trading near a connecting resistance trend line at 0.7115, which is close to the 38.2% Fib retracement level of the last decline from the 0.7204 high to 0.7056 low.
A successful close above the trend line resistance and 0.7120 would open the doors for more gains in the near term, probably towards 0.7150-60.Tags: New Zealand Dollar, NZD/USD, NZD/USD Technical Analysis, US Dollar