Key Takeaways
- New Zealand saw a critical release, as the Consumer Price Index was reported by the Statistics New Zealand.
- The CPI posted an increase of 0.1% in Q4 2015, which was lower compared with the forecast of 0.4%.
- In terms of the quarterly change, there was a decline of 0.5%, more than the market expected.
- NZDUSD pair collapsed and traded below the 0.6400 support area during the Asian session.
Forex Technical Analysis – NZDUSD
The NZDUSD pair was thrashed during the Asian session, as the pair broke a major support area of a triangle pattern on the hourly chart. The pair traded as low as 0.6356 where buyers just managed to protect any further declines.
The hourly RSI is around the oversold readings. So, there is a chance of a minor correction in the near term, but that can be seen as a selling opportunity for sellers.
New Zealand CPI
Today, there was a major release in New Zealand. The Consumer Price Index that provides price movements by the comparison between the retail prices of a representative shopping basket of goods and services was published by the NZDUSD pair was thrashed during the Asian session. The market was anticipating a decline of 0.2% in the fourth quarter of 2015, compared Q3 2015 in which there was a rise of 0.3%.
The result was very negative, as there was a decrease of 0.5% in New Zealand CPI. The year-over-year change was also unsatisfactory, as the New Zealand Consumer Price Index increased 0.1% in the fourth quarter of 2015, compared with Q4 2014.
Must Read – NZDUSD pair was thrashed during the Asian session
The NZDUSD pair suffered a nasty decline after the economic release, and it looks like the pair may continue trading down.
Technical Support levels for NZDUSD – 0.6350 and 0.6320
Technical Resistance Levels for NZDUSD – 0.6390 and 0.6400
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