Today we revised the NZDUSD analysis with the negative depreciation status, its dropping of less than 0.6500 due to adverse news from New Zealand, which serves as a key factor in the downward enhancement of the NZD’s currency. Although it was the first week that valued the NZD currency against the USD after the dreadful fall of January 02, 2020, its smooth futures broke this decline anyhow.
The first negative reporting is from the GDT Price Index of Global Dairy Trade, published a few days ago, which dropped dramatically from 1.7% to-4.7%. GDT Price Indices are used to avoid the distortion of a simple weighted average price, and to provide a more accurate representation of price movements between trade events. This decrease signifies a further weakening of the NZD currency.
Then, another is from the participation rate, published by Statistics New Zealand, which is the percentage of the total number of people in the labor force age (15 years and over) who are in the labor force (either employed or looking for a job), who suffered from a decrease of 03 points, whereas the last month index of 70.4% was expected to remain the same.
Today the NZDUSD updated itself at a price of 0.6451. It is positive for the NZDUSD that the variety of support levels which become supported for it at this stage, the Fibonacci level is assisted at 0.6425, the trend line is supported at 0.6382, and then at 0.6202, the price supported by the major horizontal support.
But on the opposite, there are several levels of resistance, at 0.6494 there is the confluence of the trendline and the main horizontal support, before that there is the level of Fibonacci at 0.6566 and then at 0.6787 there is another trendline resistance.
Circumstances for NZDUSD are getting a bit better from the past few days and now it brightens the hope that it will soon recover its favorable position.