- The New Zealand dollar moved higher versus the US Dollar and traded with a positive bias.
- The New Zealand Employment Change released by the Statistics New Zealand earlier this week posted a positive change of 2.4% in Q2 2016, more than expected.
- Today, the Visitor Arrivals figure was released, which posted an increase of 14.4% in July 2016.
New Zealand Fundamentals
This week was positive for New Zealand in terms of fundamentals. There were a few important releases, which registered a better than expected results. The most important one was the Employment Change figure by the Statistics New Zealand.
The market was expecting the change in the number of employed people in New Zealand to register +0.6%. However, it came in at 2.4%. The highlight of the release was the unemployment rate, which declined to 5.1%
Today, the Visitor Arrivals, which measures the number of visitors to New Zealand was released by the Statistics New Zealand.
The result was again above the forecast, as there was an increase of 14.4% in July 2016. The report added that “Visitor arrivals numbered 237,900 in July 2016, setting a new July record. The Visitor arrivals were up 14 percent from July 2015, due mainly to a 21 percent increase in holiday arrivals”.
NZDUSD Pair Analysis
The economic reports in New Zealand helped the Kiwi dollar to gain traction. It was seen trading in an uptrend versus the US Dollar this week. There is a monster bullish trend line formed on the 4-hours chart of the NZDUSD pair, which acted as a support and stopped the downside move.
On the upside, the 0.7310-30 levels are acting as a major barrier for more gains. There were two attempts already to break it, but the bulls failed.
However, the range area between the trend line support and resistance is contracting, which may result in a break going forward. If the buyers managed to break the highlighted resistance area, then it would open the doors more gains in the near term towards 0.7380.
Tags: New Zealand Dollar, New Zealand Employment, NZDUSD Pair Analysis, US Dollar