- New Zealand Dollar dipped sharply today against the US Dollar and tested the 0.6825 level where it found buyers.
- The NZDUSD pair is currently moving higher, but it may face sellers near a bearish trend line formed on the hourly chart.
- New Zealand Business NZ PMI released by the Business NZ today declined from 55.9 to 54.7 in March 2016.
- Any rallies in NZDUSD may be seen as a selling opportunity.
The New Zealand Dollar tumbled during the Asian session against the US Dollar to trade near the 0.6825 level. Currently, the NZDUSD pair is attempting to trade higher, but it may face offers on the upside near a bearish trend line formed on the hourly chart.
An important point to note here is that the pair is above the 200 hourly simple moving average, which increases the chance of it recovering in the short term.
One may consider selling rallies near the trend line resistance, as long as it is below it.
New Zealand Business PMI
Earlier today, the New Zealand Business PMI, which presents business conditions was released by the Business NZ. The market was not expecting any decline in the NZ PMI, but the result was disappointing. The New Zealand Business PMI declined from 55.9 to 54.7 in March 2016.
Moreover, in the US the Consumer Price Index, which is a measure of price movements was released by the US Bureau of Labor Statistics. The outcome was not positive, as the US CPI rose 0.9% in March 2016, less than the forecast of 1.2%.
Overall, the there is a chance of a minor recovery in the New Zealand Dollar, which can be seen as a selling opportunity.