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Fundamental analysis

NZDUSD Declines Sharply After Fed Decision

OctaFx | Dec. 20, 2018
NZDUSD Declines Sharply After Fed Decision

December 20, OctaFX – The NZDUSD pair declined sharply in overnight trading after the Fed decision. The declines accelerated after New Zealand released the quarterly GDP numbers.

The numbers showed that the economy expanded at an annualized rate of 2.6% which was lower than the consensus estimate of 2.8%. On a quarterly basis, the economy rose by 0.3%. The Australian dollar followed a similar trend despite better employment numbers.

While the unemployment rate climbed to 5.1%, the participation rate rose to 65.7% while the full employment numbers rose by 37K.

NZDUSD Technical Analysis

The NZDUSD pair declined sharply after the GDP numbers from New Zealand. The pair reached a low of 0.6730, which is below the short-term and longer-term moving averages on the four-hour chart.

The momentum indicator has declined sharply below the 100 level while the Average Directional Index (ADX) remains at 28, which is lower than the December high of 63. There is a likelihood that the pair will continue the downward trend before finding a bottom.

Disclaimer

This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.