Solid News

The NZD/USD pair is moving in a stable trend, and this morning it started to rise again, being close to 0.6358 and working out yesterday's correction.

The key event of this week was the publication of positive data on the gross domestic product (GDP) of New Zealand: the country's Q3 economy increased by 2.0%, more than the estimated 0.9%, and up to 6.4% YoY from 0, 3% earlier, which is also much better than the projected 5.5% increase. The positive dynamics resulted from a recovery in the services sector, which added 2.0% in November, including the transport and postal sectors, which rose 9.7% MoM. With the opening of borders, the tourism sector also shows steady growth, corrected by 7.8%.

After the US Federal Reserve meeting, which decided to soften the "hawkish" rhetoric, the US dollar fell below 104.000 in the USD Index. First of all, investors were disappointed by the November report on retail sales, which fell 0.6% after rising 1.3% last month, and industrial production, which accelerated the negative dynamics to –0.2% from –0.1% a month earlier, causing an annual correction to 2.51% from 3.34%.

The trading instrument is holding the resistance line of the downward channel on the daily chart, approaching it for a retest.

Technical indicators maintain a stable buy signal, working out a local correction: fast EMAs on the Alligator indicator are far from the signal line, and the AO oscillator histogram forms multidirectional bars in the buying zone.

Resistance levels: 0.6400, 0.6560. | Support levels: 0.6300, 0.6150.