- – The New Zealand Dollar declined sharply and broke the 0.6900 support against the US Dollar.
- – There was a break below a crucial declining channel support at 0.6850 on the hourly chart of the NZDUSD pair.
- – Today in New Zealand, the Gross Domestic Product report for Q1 2018 was released by the Statistics New Zealand.
- – The outcome was around the market forecast as the GDP grew by 0.5% in Q1 2018.
New Zealand Gross Domestic Product
Today in New Zealand, the Gross Domestic Product report for Q1 2018 was released by the Statistics New Zealand. The market was looking for a rise of around 0.5% in the GDP in Q1 2018, compared with the previous quarter.
The actual result was around the market forecast as the GDP grew by 0.5% in Q1 2018. Looking at the yearly change, there was a rise of 2.7% in the GDP in Q1 2018, less than the last reading of 2.9%. The report added that:
The service industries were up 0.6 percent in the March 2018 quarter, down from a 1.1 percent increase in the December 2017 quarter. An increase in manufacturing was offset by a fall in construction activity, resulting in a flat quarter for the goods-producing industries. The primary industries were up 0.6 percent, rebounding slightly from a 2.6 percent fall in the previous quarter.
The NZD/USD pair remained in a downtrend and it seems like the pair could extend losses below the 0.6830 in the near term.
NZD/USD Technical Analysis
The New Zealand Dollar started a major downside move from well above the 0.7020 level against the US Dollar. The NZD/USD declined, broke a few important supports such as 0.6980 and 0.6900, and also settled below 100 hourly simple moving average.
The pair even traded below the 0.6850 support and recently formed a low at 0.6831. Moreover, there was a break below a crucial declining channel support at 0.6850 on the hourly chart of the NZDUSD pair.
At the moment, the pair is consolidating losses with an initial resistance is around the 23.6% Fib retracement level of the last decline from the 0.6916 high to 0.6831 low. Above the 0.6850 level, the pair is likely to face a strong sell zone near 0.6875.
Moreover, the channel upper trend line is at 0.6880 to prevent upsides. On the downside, the pair could break the 0.6830 level to move towards the 0.6800 level.
Also published on Medium.Tags: New Zealand Dollar, NZD/USD, NZD/USD Technical Analysis, US Dollar