NZD/USD Forecast – New Zealand Dollar to Retest 0.7300 Vs US Dollar

NZD/USD Forecast – New Zealand Dollar to Retest 0.7300 Vs US Dollar

  • – The New Zealand Dollar traded as high as 0.7436 before starting a downside correction against the US Dollar.
  • – There is a key declining channel forming with resistance at 0.7365 on the hourly chart of the NZDUSD pair.
  • – Today in New Zealand, the Producer Price Index Input figure for Q4 2017 was released by the Statistics New Zealand.
  • – The outcome was above the market forecast of 0.3% as there was a rise of 0.9% in the input PPI (QoQ).

 

New Zealand Producer Price Index

Today in New Zealand, the Producer Price Index Input figure for Q4 2017 was released by the Statistics New Zealand. The market was looking for a rise of 0.3% in the PPI Input in Q4 217 compared with the previous quarter.

 

The actual result was above the market forecast of 0.3% as there was a rise of 0.9% in the input PPI. Moreover, the output index rose 1% in Q4 2017, which was more than the forecast of 0.4%. The report added that:

 

Output prices for the mining industry increased 9.3 percent, influenced by higher crude oil prices received by gas and oil extraction producers. Input prices paid by petroleum and coal product manufacturers rose 12 percent in the December 2017 quarter, influenced by higher imported crude oil prices.

 

The NZD/USD pair struggled to move higher and is currently trading below the 0.7370 support and the 100 hourly simple moving average.

 

NZD/USD Technical Analysis

The New Zealand Dollar made a nice upside move this past week and traded above the 0.7400 level against the US Dollar. The NZD/USD pair traded as high as 0.7436 where it faced a strong selling interest and started a downside move.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

The pair declined and traded below the 23.6% Fib retracement level of the last wave from the 0.7239 low to 0.7436 high. More importantly, there was a break below the 0.7370 support and the 100 hourly simple moving average.

 

At the moment, there is a key declining channel forming with resistance at 0.7365 on the hourly chart of the NZDUSD pair. The pair may decline a few more pips in the short term towards the 50% Fib retracement level of the last wave from the 0.7239 low to 0.7436 high.

 

On the downside, the 0.7300 level is a strong support and a buy zone. On the upside, a break above 0.7370 and the 100 hourly SMA could ignite an upward move.


Also published on Medium.

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