Key Points
- New Zealand Dollar struggled during the recent times, and may continue to trade down.
- There was a contracting triangle pattern 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 $-3.384B in March 2016.
- Both imports and exports came in at $4.09B and $4.20B respectively.
Technical Analysis
The New Zealand Dollar traded lower against the US Dollar, and there was a lot of selling pressure on the Kiwi dollar. The NZDUSD also broke a contracting triangle pattern formed on the hourly chart, opening the doors for more declines.
The pair also moved below the 100 and 50 hourly simple moving average, and any recovery from the current levels may face sellers near the broken trend line.
On the downside, a break below the 0.6840 support level is needed for a test of 0.6800.
New Zealand Trade Balance
The New Zealand Trade balance, which is the difference between the value of country’s exports and imports, over a period of year was released by Statistics New Zealand. The outcome was not encouraging, as there was a trade deficit of $-3.384B in March 2016, compared with March 2015.
New Zealand imports and exports came in at $4.09B and $4.20B respectively, and the report stated that “the annual trade balance for March 2016 was a deficit of $3.8 billion, the largest annual trade deficit since April 2009. The seasonally adjusted value of exported goods fell 1.2 percent ($145 million) to $11.9 billion in the March 2016 quarter”.
The NZDUSD looks bearish, and if the current break is real, then there are chances of more downside in the short term.
