At the beginning of the second December decade, the New Zealand Dollar was supported by the news related to financial and political “relocations”, which was taken by investors quite well. Moreover, the New Zealand Dollar rate was positively affected by the statistics.
So, Adrian Orr has been appointed as a new Governor of the Reserve Bank of New Zealand, effective from March 27th, 2018. Previously, Orr was the Chief Executive at the New Zealand Superannuation Fund and the Deputy Governor and Head of Financial Stability at the Reserve Bank. Orr will replace Acting Governor Grant Spencer in March next year. He was appointed unanimously.
As for the statistics, investors do not consider the electronic card retail sales to be one of the most important reports, but on Monday morning, which was very quiet, they took this information very positively. In November, the indicator expanded by 1.4% y/y, which is better than it was in the previous month.
There are two more important reports planned for this week, the business NZ manufacturing index (November) on Friday and the Westpac Consumer Sentiment (the fourth quarter) on Sunday.
These reports will show if the New Zealand business is positive when it comes to estimating future outlook and expenses, and describe consumer confidence as well.
From the technical point of view, the H4 chart of the NZD/USD pair shows the uptrend. We should note that the price broke the resistance level and reversed to the upside at the end of November but still hasn’t been able to reach the projected target at 0.6980. Probably, such movement may be considered as a horizontal correction. The short-term target is the area between the resistance and support levels at 0.6875 and 0.6980 respectively. Before moving towards 0.6980, the price may pause and test 0.6875. A more ambitious target is at 0.7190. However, to continue growing towards it, the instrument has to break 0.6980 and fix it first.
As we can see at the daily chart, the pair is testing the support level of the downtrend from below. As a result, we may assume that the dominating downtrend hasn’t completed yet. The next possible downside target is at 0.6490.
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This article was originally posted on FX Empire
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