NZD/USD Forecast – New Zealand Dollar Surging Higher Vs US Dollar

NZD/USD Forecast – New Zealand Dollar Surging Higher Vs US Dollar

  • – The New Zealand Dollar found a strong buying interest near 0.6755 against the US Dollar.
  • – There was a break above a crucial bearish trend line with resistance near 0.6760 on the hourly chart of the NZDUSD pair.
  • – Today in New Zealand, the Consumer Price Index for Q2 2018 was released by the Statistics New Zealand.
  • – The outcome was below the market forecast of +0.5% (QoQ) as there was a rise in the CPI by 0.4%.

 

New Zealand Consumer Price Index

Today in New Zealand, the Consumer Price Index for Q2 2018 was released by the Statistics New Zealand. The market was looking for a rise of around 0.5% in the CPI in Q2 2018 compared with the previous quarter.

 

The actual result was below the market forecast of +0.5% (QoQ) as there was a rise in the CPI by 0.4%. Looking at the yearly change, there was a rise of 1.5% in the CPI, which was less than the forecast of 1.6%, but a lot more than the last 1.1%. The report added that:

 

The largest contributor to inflation was higher prices for housing and household utilities, up 0.9 percent this quarter, and 3.1 percent in the year to June 2018.

 

The NZD/USD pair gained bullish momentum above the 0.6800 level and it seems like the pair may accelerate gains in the near term.

 

NZD/USD Technical Analysis

The New Zealand Dollar formed a solid support base above the 0.6750 level against the US Dollar. The NZD/USD jumped sharply higher, broke the 0.6760, 0.6780 and 0.6800 resistances, and settled above the 100 hourly simple moving average.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

During the upside move, there was a break above a crucial bearish trend line with resistance near 0.6760 on the hourly chart of the NZDUSD pair. The pair also moved above the 61.8% Fib retracement level of the last decline from the 0.6856 high to 0.6725 low.

 

It has opened the doors for more gains and the pair could surge towards the 0.6850 level in the short term since it is about to settle above the 76.4% Fib retracement level of the last decline from the 0.6856 high to 0.6725 low.

 

Overall, the market sentiment is bullish and dips in NZD/USD are likely to find support near 0.6800 and 0.6780.


Also published on Medium.

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