Key Points
- The New Zealand dollar moved down versus the US Dollar during the Asian session and was seen under a bearish pressure.
- There was a bullish trend line formed on the hourly chart of the NZDUSD pair, which was broken during the downside move.
- New Zealand Trade balance, released by Statistics New Zealand posted a trade deficit of $-3.03B in July 2016, more than the forecast.
- In terms of the monthly change, there was a deficit of $-433M in July 2016.
NZDUSD Technical Analysis
The New Zealand dollar was under bearish pressure recently against the US Dollar, and a result there was a downside move in NZDUSD. There was even a break below a bullish trend line formed on the hourly chart of the NZDUSD pair.
The pair also moved below the 21 hourly simple moving average, which is currently acting as a resistance.
Selling rallies can be considered as long as the pair is below the 0.7300 resistance level.
New Zealand Trade Balance
Today in New Zealand, the Trade Balance, which is a measure of balance amount between import and export was released by the Statistics New Zealand.
The market was expecting a trade deficit of $-320M in July 2016, compared with the previous month. However, the result was below the forecast, as there was a deficit of $-433M. In terms of the yearly change as well the outcome was disappointing with a deficit of $-3.03B. The report added that “Beef export values and quantities to the United States were down in July while lamb values and quantities to the European Union were also down. The United States and the EU are the largest export destinations for beef and lamb, respectively.”
Overall, the result was disappointing, which may weigh on the New Zealand dollar in the short term.
