Key Points
- The New Zealand Dollar recently traded as high as 0.7200 against the US Dollar where it faced sellers.
- There was a break below a bullish trend line with support at 0.7170 on the hourly chart of NZDUSD.
- Today in New Zealand, the Consumer Price Index for Q3 2017 was released by the Statistics New Zealand.
- The outcome was above the forecast of 0.4% as there was a rise of 0.5% in the index (MoM).
NZDUSD Technical Analysis
The New Zealand Dollar made a nice upside move recently and traded above 0.7150 against the US Dollar. The NZDUSD pair traded as high as 0.7200, where it faced sellers and later started a downside correction below 0.7180.
The pair declined and broke a bullish trend line with support at 0.7170 on the hourly chart along with the 21 hourly simple moving average.
At present, the pair is attempting a close below the 23.6% Fib retracement level of the last wave from the 0.7056 low to 0.7200 high. Once there is a break of 0.7160, there can be a downside extension towards 0.7130-20.
New Zealand Consumer Price Index
Recently in New Zealand, the Consumer Price Index for Q3 2017 was released by the Statistics New Zealand. The market was positioned for the CPI to increase by 1.8% compared with the same month a year ago.
The actual result was above the forecast of 1.8% as there was a rise of 1.9% in the CPI. In terms of the monthly change, the forecast was slated for a 0.4% rise in Q3 2017, but there was an increase of 0.5%. The report added that:
Collectively, housing-related costs had the largest upward contribution in the September 2017 quarter, slightly offset by falls in transport prices.
Overall, the NZDUSD pair downsides remain supported above 0.7120, but there can be more declines in the short term.
