Fundamental Analysis of NZD/USD for December 15, 2017
December 15, 2017 9:20 am
NZD/USD is currently residing inside the resistance area of 0.6980 to 0.7050 after an impulsive bullish pressure off the 0.68 support area. Despite the federal funds rate increase to 1.50% from 1.25%, the market shaped the opposite sentiment that has led to a further gain on the NZD side recently. Today, New Zealand’s Business Manufacturing Index report was published with an increase to 57.7 from the previous figure of 57.3 which helped the currency to gain some momentum again over USD after the bearish pressure in the pair yesterday. On the USD side, today Empire State Manufacturing Index report is expected to show a decrease to 18.8 from the previous figure of 19.4, Capacity Utilization Rate is expected to have a slight increase in value to 77.2% from the previous value of 77.0%, and Industrial Production is expected to decrease in value to 0.3% from the previous value of 0.9%. As for the current scenario, USD is expected to gain some momentum in the coming days if the upcoming economic reports shows better than expected readings. This could lead to further strengthening of USD against NZD.
Now let us look at the technical chart. The price is currently showing some bullish pressure after an impulsive bearish daily candle formed yesterday. In this case, if the price breaks below 0.6980 support level with a daily close, then we will expect further bearish pressure in the pair which will continue the bearish trend with a target towards 0.68 support area. As the price remains below 0.7050 resistance level, the bearish bias is expected to continue further.
The material has been provided by InstaForex Company – www.instaforex.com
NZD/USD is currently residing inside the resistance area of 0.6980 to 0.7050 after an impulsive bullish pressure off the 0.68 support area. Despite the federal funds rate increase to 1.50% from 1.25%, the market shaped the opposite sentiment that has led to a further gain on the NZD side recently. Today, New Zealand’s Business Manufacturing Index report was published with an increase to 57.7 from the previous figure of 57.3 which helped the currency to gain some momentum again over USD after the bearish pressure in the pair yesterday. On the USD side, today Empire State Manufacturing Index report is expected to show a decrease to 18.8 from the previous figure of 19.4, Capacity Utilization Rate is expected to have a slight increase in value to 77.2% from the previous value of 77.0%, and Industrial Production is expected to decrease in value to 0.3% from the previous value of 0.9%. As for the current scenario, USD is expected to gain some momentum in the coming days if the upcoming economic reports shows better than expected readings. This could lead to further strengthening of USD against NZD.
Now let us look at the technical chart. The price is currently showing some bullish pressure after an impulsive bearish daily candle formed yesterday. In this case, if the price breaks below 0.6980 support level with a daily close, then we will expect further bearish pressure in the pair which will continue the bearish trend with a target towards 0.68 support area. As the price remains below 0.7050 resistance level, the bearish bias is expected to continue further.
The material has been provided by InstaForex Company – www.instaforex.com
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