NZDUSD WEEKLY OUTLOOK NOV 18-22ND; DOUBLE BOTTOM BULLISH REBOUNCE

FUNDAMENAL BEAM

The New Zealand dollar remained in range in the aftermath of the roller coaster . Quarterly PPI figures are the highlights of this week. Here is an outlook for the events moving the kiwi, and an updated technical analysis for NZD/USD.

After the  excellent jobs report seen in the previous week, a disappointment was printed in the retail sales report. The volume of sales rose by only 0.3% and core sales disappointed with a drop. Inflation figures now are important for the next decisions of the RBNZ.

Here is a summary of key events during the week

1. PPI: Tuesday, 21:45. The producer price index is published in New Zealand only once per quarter, thus making the market impact stronger. As the Reserve Bank of New Zealand stated that 2014 will likely see a rate hike, the moves in prices will help determine the timing. In Q2, PPI Input rose by 0.6%, exactly as expected. This is the main figure that measures prices that manufacturers received. PPI Output rose by 1%.
2. Credit Card Spending: Thursday, 2:00. Changes in consumers’ mood can be seen in usage of credit cards, which are in wide use in New Zealand. The year on year growth that was reported in September stood on 5.2%, lower than 6.6% seen in August. A similar rise is expected now.
3. Visitor Arrivals: Thursday, 21:45. New Zealand enjoys a strong tourism sector, so arrivals from overseas have an impact on the wider economy and on the currency. A drop of 1% was seen in September. A rise is now likely in October.

TECHNICAL BEAM

 

This pair takes a confident bullish turn after making a rebounce at the technical support previously established 5th of November, 2013. The chart above shows a detailed technical outlook for this com this week.

As seen above, an expected wave leg 5 is due for completion following the rebounce of NZDUSD at a key technical support. Market prices are expected to take a complete downside move south-east of the chart after hitting 0.8619.

APOLOGIES FOR POSTING THIS OUTLOOK LATE:: INABILITY DULY AS A RESULT OF POOR INTERNET CONNECTION

NOTE: Price predictions produced by FibonacciPrice&PatternTrader may be affected by unforseen events like hurricane, earth quake, flood and other natural disasters consequently changing price patterns already predicted. Hence we advice strict adherence to money management techniques.

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