- New Zealand Dollar recently traded higher towards 0.7130 against the US Dollar where it found sellers.
- Before the upside move, it broke a flag pattern formed on the hourly chart of the NZDUSD pair.
- The pair is now well above the 100 and 200 hourly simple moving averages, which is a positive sign.
- New Zealand Westpac Consumer Confidence released by Westpac New Zealand posted a decline from 109.6 to 106.0 in Q2 2016.
The New Zealand dollar spiked higher during the Asian session today against the US Dollar until it found sellers near 0.7130. The NZDUSD pair also broke a flag pattern formed on the hourly chart before the upside move, and settled above all key moving averages.
The pair is currently correcting lower, but may find bids near the 23.6% Fib retracement level of the last leg from the 0.6968 low to 0.7127 high.
On the upside, a break above the last swing high of 0.7127 may call for a move towards the next resistance of 0.7160.
New Zealand Westpac Consumer Confidence
Today, New Zealand Westpac Consumer Confidence, which is an indicator of the mood of consumers or business was released by Westpac New Zealand. The market was not expecting any decline in the index in Q2 2016. However, the result was disappointing, as there was a decline from 109.6 to 106.0 in Q2 2016.
The report stated that “March quarter GDP rose by 0.7%, slightly ahead of market expectations. The highlights were a sharp rise in construction work over the summer, strong growth in overseas tourist spending, and rising demand for services from a rapidly growing population”.
Overall, the NZDUSD pair may correct a few pips from the current levels, but may find bids near 0.7070-60.