Looking at the New Zealand dollar (NZD) on the above four (4) hour NZD/USD MT 4 price action chart, price action has fallen towards 0.6580 during the early Asian trade session on Tuesday.
The weakness being seen with the New Zealand dollar comes from two factors, fundamentally speaking. Firstly the Peoples’ Bank of China (PBOC) left monetary policy and rates as is. The island nation, like Australia has a great deal of trade exposure with China.
Also recent dovish rhetoric from the head of the Reserve Bank of New Zealand (RBNZ) Adrian Orr is weighing on the currency.
The economic calendar for Tuesday is not particular busy. New Zealand is publishing their NZIER business confidence index as well as monthly credit card spending. The world’s largest economy, the United States will release monthly housing starts data as well as monthly building permits data.
The European Union economic calendar is not very busy as well. The Eurozone is publishing their monthly current account data. The largest economy in the Eurozone, Germany is releasing monthly producer price index (PPI) data. Both the United Kingdom and Canada have no economic data scheduled to be released today.
Daily New Zealand Technical Analysis (NZD/USD)
Looking at the above price action chart, the NZD/USD Forex market has the first layer of technical support lining up at an ascending trend line. This downside barrier is in play at 0.6575. The next layer of technical support lines up at the monthly low price point. This downside barrier is at 0.6546.
On the upside, the NZD/USD currency exchange rate has a former support now technical resistance level in play at 0.6590. A daily close above this price point brings the two hundred (200) hour simple moving average (HMA) into play.
This upside barrier comes into play at 0.6645. A sustained close above the 200 hour HMA should bring the bulls back into this Forex market. In this scenario the upside barrier at the monthly high price point at 0.6683 will come into focus.