- New Zealand Dollar was seen trading with a bullish tone against the US Dollar and may continue to trade higher.
- There is a bullish trend line formed on the hourly chart of NZDUSD, which may continue to act as a support area.
- New Zealand Consumer Price Index released by the Statistics New Zealand posted a rise of 0.2% in Q1 2016, compared with Q1 2015.
- In terms of the yearly change, there was a rise of 0.4% in the NZ CPI in Q1 2016.
The New Zealand Dollar is following a nice bullish trend against the US Dollar, and the lasted NZ CPI release helped the cause. There is a bullish trend line formed on the hourly chart of NZDUSD, which may continue to act as a buying area.
If the NZDUSD pair moves down from the current levels, then it can find bids near the 100 hourly simple average which can server as a barrier for sellers.
Buying dips are favored as long as the NZDUSD pair is above the trend line and support area.
Earlier today during the Asian session, the New Zealand Consumer Price Index that points price movements by the comparison between the retail prices of a representative shopping basket of goods and services was released by the Statistics New Zealand. The outcome was encouraging, as the CPI came in at 0.2% in Q1 2016, compared with Q1 2015.
Moreover, when we consider the yearly change, then the New Zealand Consumer Price Index posted a rise of 0.4% in Q1 2016, compared with the same quarter a year ago. Moreover, the report stated that the “Petrol prices (down 7.7 percent) made the largest downward contribution for the quarter. The average price of one litre of 91 octane petrol fell to $1.69 in the March 2016 quarter, compared with $1.84 in the previous quarter.”
The New Zealand Dollar was seen trading higher after the release and may gain further traction in the short term.