NZDUSD Set to Soar to 0.70 After Strong New Zealand Retail Sales

The NZDUSD is up by 0.25% in early trading after the impressive New Zealand retail sales numbers. The pair has risen to 0.6945, which is its two-year high.

In a report earlier today, the New Zealand statistics bureau said that retail sales rose sharply in the third quarter. In total, sales rose by 28% in the quarter, a strong performance from Q2’s decline of 14.6%. In total, the sales rose to more than n$1.8 billion.

This increase was mostly because of a strong performance in household items, vehicles, and groceries. New Zealanders bought vehicles and parts worth more than $454 million. They also bought goods worth more than $429 million from grocery stores and supermarkets.

However, sales in the hospitality industry continued to lag as the country continued to close its borders to prevent the virus from spreading.

Meanwhile, the weaker greenback has also contributed to the strong NZDUSD performance. The dollar has started the week on a lower note as political risks in the US ease and as countries plan their vaccinations.

NZDUSD technical outlook

On the hourly chart, we see that the NZDUSD has been on an overall upward trend. That has seen it remain above the 25-day and 50-day exponential moving averages. It is also above the ascending black. The price is also above the important level of 0.6915, which is the November 12 high.

Therefore, the pair will continue rising so long as it is above the two MAs and the ascending line. The immediate target for this will be the 0.7000 level. On the flip side, a move below the support at 0.6965 will invalidate this trend.

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NZDUSD technical chart


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