- The New Zealand Dollar is trading with a positive bias, but faces a major resistance near 0.7320 against the US Dollar.
- There are two bearish trend lines with resistance near 0.7320 formed on the 4-hours chart of NZD/USD.
- New Zealand Food Price Index in August 2017 rose 0.6%, compared with the last -0.2%.
- The US Producer Price Index for August 2017 will be released today, which is forecasted to increase by 0.3% (MoM).
NZDUSD Technical Analysis
The New Zealand Dollar recovered well from the August 2017 low of 0.7130 against the US Dollar. The NZD/USD pair is currently in the bullish zone, but faces a crucial resistance near 0.7320.
The pair already attempted twice to settle above the 0.7320-0.7340 resistance levels, but failed. There are two bearish trend lines with resistance near 0.7320 formed on the 4-hours chart. These trend lines along with the 200 simple moving average (H4) are protecting an upside break.
On the downside, there are two bullish trend lines near 0.7270 and 0.7240. Moreover, the 100 simple moving average (H4) is at 0.7230 to act as a major support.
Overall, it seems like the pair is well supported on the downside between 0.7270-0.7220. Having said that, the pair needs to break the 0.7320-0.7340 to gain further upside momentum.
New Zealand Food Price Index
Today in New Zealand, the Food Price Index (FPI) for August 2017 was released by the Statistics New Zealand. The forecast was slated for a minor rise of 0.1% compared with the previous month.
However, the actual result was above the forecast, as the FPI posted an increase of 0.6%, compared with the last -0.2%. There was a sharp rise in Butter prices in August 2017 by 11% to a new high of $5.39 a block.
Commenting on the data, the consumer’s price index manager, Matthew Haigh, stated:
We have seen butter prices rising lately due to New Zealand’s export driven market. Butter prices have experienced all-time highs in the global market, and this also drives the price here at home.
To sum up, the NZD/USD pair remains elevated, but it won’t be easy for buyers to clear strong offers near 0.7320 and 0.7340.