Solid News

The New Zealand dollar shows a moderate decline, correcting after an attempt to grow the day before, which led to a short-term update of local highs from August 19. The uptrend was not hindered by weak macroeconomic data from New Zealand, released yesterday. Retail Sales fell 2.3% in the second quarter, after falling 0.9% in the prior period, and Retail Sales excluding Autos fell 1.6% after falling 0.3% a quarter earlier.

At the same time, the statistical picture from the USA turned out to be mixed. Revised annual data on Gross Domestic Product (GDP) in the second quarter showed a decline of 0.6%, which was significantly better than the previous estimate of –0.9%. At the same time, the Gross Domestic Product Price Index for the same period was revised upward from 8.9% to 9.0%, while the forecast was for a decrease to 8.7%. This means that inflationary risks in the country remain high, and therefore the US Federal Reserve may continue to tighten monetary policy at a record pace.

The instrument is slightly supported today by the statistics from New Zealand: the ANZ Roy Morgan Consumer Confidence in August rose noticeably from 81.9 points to 85.4 points, which turned out to be better than the average analysts' expectations.

Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is expanding, while remaining spacious enough for the current activity level in the market. MACD tends to reverse into an upward plane and form a new buy signal (the histogram should consolidate above the zero level). Stochastic is showing a more confident growth and is located in the middle of its area.

Resistance levels: 0.6250, 0.6300, 0.6350, 0.6400. | Support levels: 0.6200, 0.6155, 0.6079, 0.6040.