Key Points
- The New Zealand Dollar continued to enjoy good gains against the US Dollar, and may continue to rise.
- There is a major bullish trend line formed on the hourly chart of the NZDUSD pair, which is acting as a support zone.
- Today, the Chinese Trade Balance report was released by the General Administration of Customs of the People’s Republic of China.
- The forecast was lined up for a trade surplus of $58.000B in August 2016, but it posted $52.050B.
NZDUSD Technical Analysis
The New Zealand dollar surged higher recently and traded above the 0.7450 resistance area against the US dollar. There is currently a major bullish trend line formed on the hourly chart of the NZDUSD pair, which is pushing the pair higher.
There is a crucial resistance at 0.7485. A break above it could ignite a nice upside move in the pair moving ahead.
On the downside, a break below the trend line could push the pair towards the 21 hourly simple moving average.
Chinese Trade Balance
Today during the Asian session, the Chinese Trade Balance, which is a balance between exports and imports of total goods and services was released by the General Administration of Customs of the People’s Republic of China.
The forecast was lined up for a trade surplus of -$58.000B in August 2016. However, the outcome was below the forecast, as the trade surplus was $52.050B. The Chinese imports rose by 1.5% in August 2016, and exports declined by 2.8%. The market was expecting a decline of 4% in exports, so the result was better than the forecast. The market sentiment was helped after the recent release and the NZ dollar also gained traction.
Overall, the NZDUSD pair looks set for more gains, and a break of the highlighted resistance could push the pair towards 0.7540.
