Technical Bias: Bearish
Key Takeaways
- New Zealand dollar struggling to hold the ground against the US dollar and looks set for further losses in the near term.
- Technical indicators favor downside in the NZDUSD pair.
- NZDUSD support seen at 0.8310 and resistance ahead at 0.8360.
The US dollar gained traction against the New Zealand dollar during the Asian session, as the NZDUSD pair traded below an important support level of 0.8360.
ANZ Commodity Price
Earlier during the Asian session, the ANZ Commodity Price was released by the ANZ National Bank which points an early estimate for New Zealand’s main export price changes. The report published mentions that the ANZ Commodity Price Index fell for the sixth time, and registered a decline of 3.3% in August. It is the second largest of the past six months, and more importantly a 17-month low. The report also highlighted the fall in the dairy prices. Overall, the data pointed weakness, which might weigh on the New Zealand dollar in the near term.
Technical Analysis
There was a critical bullish trend line on the hourly chart of the NZDUSD pair, which was breached earlier during the Asian session. The pair traded slightly below the 61.8% Fibonacci retracement level of the last leg higher from the 0.8310 low to 0.8406 high. The pair managed to bounce from the mentioned fib level, and currently struggling around the broken support trend line. There is a chance that the pair might fall again from the current or a bit higher levels. Overall, the trend is down in the pair and the New Zealand dollar sellers could be aiming for a retest of the previous low (0.8310).
On the upside, if the pair manages to break the 0.8360 resistance area, then a move closer to a critical confluence area of 100, 200 and 50 hourly simple moving average is likely in the short term.