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NZDUSD Received a Growth Impetus
12/6/2022 1:06 PMThe NZD/USD pair moves within an uptrend, trading around 0.6325, and recent macroeconomic statistics contributed to the local positive dynamics.
Thus, the report of Statistics New Zealand (Stats.nz) recorded a smooth recovery of the national real estate market: Q3 construction activity in the residential sector increased by 3.1%, and non-residential – by 4.9%, as a result of which the overall indicator increased by 3.8%. Despite the positive dynamics, inflation continues to negatively affect the cost of building maintenance: Q3 cost of maintaining residential buildings increased by 3.0%, and non-residential – by 1.5%.
The US dollar started trading slightly higher, surpassing 105.000 in the USD Index, supported by positive data on the non-manufacturing Purchasing Managers' Index from the Institute for Supply Management (ISM). Although analysts expected another decline in the index to 53.3 points, in November, it reached 56 .5 points compared to October's 54.4 points. Also, the agency reported an increase in employment in the service sector to 51.5 points from 49.1 points earlier. Since no key statistics from the US are expected before the Thursday labor market report, the dollar may be under pressure, which will have nothing to compensate for.
On the daily chart, the trading instrument moves above the resistance line of the downward channel, approaching it from above for reverse testing.
Technical indicators maintain a stable buy signal, ignoring a possible local correction: fast EMAs on the Alligator indicator move away from the signal line, and the AO oscillator histogram forms upward bars in the buying zone.
Resistance levels: 0.6400, 0.6560. | Support levels: 0.6265, 0.6100.