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New Zealand Dollar is Holding within an Uptrend
12/12/2022 12:33 PMThe NZD/USD pair is moving within an uptrend, trading near 0.6394 after the release of positive macroeconomic data in New Zealand.
According to a report by the National Statistical Office (Stats.nz), the number of arrivals in the country in the period from January to October amounted to 78,700K – 40.0% more than in the same period a year earlier, and the total number of migrants was recorded around 82,800K, which 23.0% higher than the same indicator a year earlier and signals the recovery of the national economy. Thus, the indicator of total migration reflected an outflow of 4,100 people, which is much better than last year's value of –11,200 people. At the same time, the tourist flow expectedly decreased from 16.6% to 6.8% in October due to seasonal factors.
Despite the positive statistics on Friday, the US dollar could not move up and remained near the 104.700 mark in the USD Index: the producer price index rose by 0.3% in November, which coincided with the positive dynamics of the previous period and exceeded the growth forecast by analysts by 0.2 %. In turn, Core PPI increased by 0.4% against preliminary estimates of 0.2% and contributed to the correction of the annual value to 6.2% against the forecast of 5.9%.
On the daily chart, the trading instrument is above the resistance line of the downward channel, moving away from it, and forming a new upward wave.
Technical indicators keep a stable buy signal, ignoring the local correction: fast EMAs on the Alligator indicator move away from the signal line, and the AO oscillator histogram forms multidirectional bars in the buying zone.
Resistance levels: 0.6440, 0.6630. | Support levels: 0.6310, 0.6100.