NZD/USD Forecast – New Zealand Dollar Eyes Further Gains Vs US Dollar
- – The New Zealand Dollar is trading nicely and is currently above the 0.7300 level against the US Dollar.
- – There is a major bullish trend line forming with support at 0.7320 on the hourly chart of the NZDUSD pair.
- – Today in New Zealand, the NZIER Business Confidence for Q1 2018 was released by the New Zealand Institute of Economic Research.
- – The outcome was above the market forecast of -12% as the NZIER Business Confidence declined 11%.
New Zealand NZIER Business Confidence
Today in New Zealand, the NZIER Business Confidence for Q1 2018 was released by the New Zealand Institute of Economic Research. The market was looking for a decline of around 12% in the index in Q1 2018 compared with the previous quarter.
The actual result was above the market forecast of -12% as the NZIER Business Confidence declined 11%. This was also better than the last -12%, but we cannot discard the fact that there was a decline of 11%. The report stated:
The latest NZIER Quarterly Survey of Business Opinion (QSBO) shows businesses continue to expect a deterioration in economic conditions over the coming months. Business confidence had fallen sharply in the December 2017 quarter in the wake of the new Labour-led Government taking office, and this pessimism has carried over into the first quarter of 2018.
The NZD/USD pair was not affected much and it seems like the pair may continue to rise above 0.7320 in the near term.
NZD/USD Technical Analysis
The New Zealand Dollar started a nice bullish wave from the 0.7250 swing low against the US Dollar. The NZD/USD pair moved higher and it was successful in moving past a major hurdle near 0.7300 and the 100 hourly simple moving average.
The pair even succeeded in breaking the last swing high of 0.7321, which is a positive signs. It means there is a chance of it trading towards the 1.236 Fib extension of the last drop from the 0.7321 high to 0.7242 low.
At the moment, the pair is correcting lower with an initial support near the 0.7321 level. Moreover, there is a major bullish trend line forming with support at 0.7320 on the hourly chart of the NZDUSD pair. As long as the pair is above the 0.7300 level, it remains supported for more gains.
On the upside, the next hurdles could be 0.7340 and 0.7350. Above 0.7350, the pair may even trade towards the 0.7400 level in the near term.
Also published on Medium.
