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.
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