Technical Bias: Bullish
- New Zealand Dollar climbed higher against the US dollar, and it would be interesting to see how traders react during the coming session post Chinese CPI.
- Chinese Consumer Price Index released by the National Bureau of Statistics of China managed to rise by 0.3% in July 2015 as expected.
- Chinese Producer Price Index declined by 5.4% in July 2015, which was more than the expectation of -5%.
- NZDUSD trading above key resistance areas, suggesting more upsides are possible.
The NZDUSD pair enjoyed a decent run towards the upside recently, as the pair moved above the 200 hourly simple moving average. The pair also climbed above the triangle pattern formed on the hourly chart to set the tone for more gains. Currently, the pair is correcting lower and might find support around the 50% Fib retracement level of the last wave from 0.6533 to 0.6637. The mentioned fib level is also coinciding with the 200 hourly SMA and the broken trend line. So, buyers may appear around 0.6585 to prevent downsides.
On the upside, the last swing high of 0.6637 could act as a resistance and, and if there is a break above it, the pair could head towards 0.6660.
On the downside, the 200 SMA is a key support area.
Chinese CPI and PPI
Earlier during the Asian session, the Chinese Consumer Price Index, measuring the retail price variations within a representative basket of goods and services was released by the National Bureau of Statistics of China. The forecast was of a 0.3% rise in July 2015, compared with the preceding month. The outcome was as expected, and the yearly rate was above the forecast with a 1.6% increase in July 2015.
Buying dips around the 200 hourly MA might be a nice option in the near term.