The New Zealand dollar remained in a steady range during the trading previous weeks, with the slight disappointments being unable to push the currency down. Inflation related numbers will be taken into consideration for the next trading phase.
Here is an analysis of fundamentals and technical analysis for NZD/USD.
New Zealand retail sales were under expectations, rising only 0.7% in Q1 2014. Also the Business NZ Manufacturing Index was only 55.2 points, but also the US dollar had also bad news, and this kept the pair balance.
Fundamental analysis:
-PPI: Sunday, 22:45. Producer prices are published only once a quarter, making them especially important, even though consumer prices serve as the headlines. In Q4 2013, input PPI dropped by 0.7% and output prices by 0.4%. Both are expected to rise this time.
-Visitor Arrivals: Tuesday, 22:45. With a strong tourism sector, the number of arrivals makes a difference for the country and for the currency. After a drop of 3% in March, a significant rise is expected for April.
-Credit Card Spending: Wednesday, 3:00. With retail sales published only once per quarter, the use of credit cards fills the vacuum and provides a more up to data picture of spending. After a y/y leap of 8.1% in March, a small slide is likely for April.
-Inflation Expectations: Thursday, 3:00. This official publication from the RBNZ is telling about future rate hike plans. Expectations reached 2.3% in Q4 2013, closer to the high end of the range seen in recent years. A small uptick is expected for Q1 2014.
Technical Analysis:
NZD/USD capped by the 0.8640 line mentioned before. It then managed to break this line but after failing to break the round number of 0.87, the pair retreated.
The previous high is 0.8842 is not that far away. Below this level, the recent 2014 high of 0.8780 is the resistance at the moment.
The previous 2014 was 0.8745 will be watched on any upside move. The round number of 0.87 proved its strength during May and is upside resistance, but 0.8640 is close by and is still of significance as a pivotal line.
The low of 0.8550 is the next support,and 0.85 is around number and could trigger possible new supports as 0.8435 that was the peak in September and was retested in January.
Moreover 0.8335 capped a move higher in December and also had a role in the past. The pair fell short of this line in January 2014. Below, 0.8280 supported the pair in February 2014 and also in the past. 0.82, worked as support several times: in September, October and also in December. It is somewhat weaker now.
However, with the lack of any positive data from New Zealand and the improvements from USA together with the desire of the RBNZ to weaken the currency, we could begin seeing a decline.
Try our demo http://trustcapital.com/demo_account.php
Here is an analysis of fundamentals and technical analysis for NZD/USD.
New Zealand retail sales were under expectations, rising only 0.7% in Q1 2014. Also the Business NZ Manufacturing Index was only 55.2 points, but also the US dollar had also bad news, and this kept the pair balance.
Fundamental analysis:
-PPI: Sunday, 22:45. Producer prices are published only once a quarter, making them especially important, even though consumer prices serve as the headlines. In Q4 2013, input PPI dropped by 0.7% and output prices by 0.4%. Both are expected to rise this time.
-Visitor Arrivals: Tuesday, 22:45. With a strong tourism sector, the number of arrivals makes a difference for the country and for the currency. After a drop of 3% in March, a significant rise is expected for April.
-Credit Card Spending: Wednesday, 3:00. With retail sales published only once per quarter, the use of credit cards fills the vacuum and provides a more up to data picture of spending. After a y/y leap of 8.1% in March, a small slide is likely for April.
-Inflation Expectations: Thursday, 3:00. This official publication from the RBNZ is telling about future rate hike plans. Expectations reached 2.3% in Q4 2013, closer to the high end of the range seen in recent years. A small uptick is expected for Q1 2014.
Technical Analysis:
NZD/USD capped by the 0.8640 line mentioned before. It then managed to break this line but after failing to break the round number of 0.87, the pair retreated.
The previous high is 0.8842 is not that far away. Below this level, the recent 2014 high of 0.8780 is the resistance at the moment.
The previous 2014 was 0.8745 will be watched on any upside move. The round number of 0.87 proved its strength during May and is upside resistance, but 0.8640 is close by and is still of significance as a pivotal line.
The low of 0.8550 is the next support,and 0.85 is around number and could trigger possible new supports as 0.8435 that was the peak in September and was retested in January.
Moreover 0.8335 capped a move higher in December and also had a role in the past. The pair fell short of this line in January 2014. Below, 0.8280 supported the pair in February 2014 and also in the past. 0.82, worked as support several times: in September, October and also in December. It is somewhat weaker now.
However, with the lack of any positive data from New Zealand and the improvements from USA together with the desire of the RBNZ to weaken the currency, we could begin seeing a decline.
Try our demo http://trustcapital.com/demo_account.php
No comments:
Post a Comment