NZDUSD Notches Another High on Strong New Zealand Data

Summary:

The NZDUSD pair rose to the highest level since last year after strong import and export price data from New Zealand. The US dollar index has weakend

The NZDUSD pair rose sharply during the Asian session as traders reacted to strong economic data from New Zealand. The pair is trading at 0.6780, which is the highest level since July 2019. It rose even as the US dollar index rose during the session.

The NZDUSD pair is today reacting to better export data from the country. According to the Statistics bureau, the export prices of the country’s key products increased to a record high in the second quarter. The index rose by 2.4% compared with a 0.2% decline in the first quarter. Import price, on the other hand, declined by 0.1%, pushing the terms of trade to a new high of 2.5%.

According to the bureau, dairy export prices increased by 4.1% while forestry products increased by 11% after falling by 3.3% in the previous quarter. However, the volume of forestry declined by 20% mostly because partnering countries were in lockdown.

These numbers came a day after we received relatively strong building permits data from New Zealand. According to the bureau, building consents have risen to more than 10,000 in the past three months alone.

Meanwhile, the NZDUSD pair has risen even as the US dollar index rose by 0.10%. The dollar index recovered after the positive manufacturing PMI data from the United States.

NZDUSD technical analysis

The NZDUSD pair rose to an intraday high of 0.6782, which is the highest level since last year. The pair has risen in six of the past seven days. The price is above the 50-day and 100-day exponential moving averages. It is also above the previous YTD high of 0.6750. The price is also above the ascending trend line that is shown in green.

Therefore, I suspect that the price will continue rising as bulls aim for the next resistance at 0.6800. On the flip side, a decline below 0.6515 will invalidate this trend. This price is at the intersection of the ascending trend line and the lowest level in August. You can learn about this in our comprehensive trading course.