Key Points
- The New Zealand dollar remained supported near 0.7150 against the US Dollar.
- There is a bullish trend line formed on the hourly chart of NZDUSD, which is providing support around 0.7140-50.
- Today, the New Zealand Trade Balance figure was released by the Statistics New Zealand.
- There was a trade deficit of $-1,436M in Sep 2016, compared with the previous month deficit of $-1,243M (revised).
NZDUSD Technical Analysis
The New Zealand dollar after trading towards 0.7184 found sellers and moved down. The NZDUSD pair traded as low as 0.7140 where a bullish trend line formed on the hourly chart protected the downside move.
The 50% Fib retracement level of the last leg from the 0.7108 low to 0.7184 high also acted as a barrier for sellers and prevented losses. The pair is currently trading higher, and somehow managed to move above the 21 hourly simple moving average.
As long as the pair is above the trend line support, there are chances of more upsides towards the 0.7180 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 not expecting an increase in the trade deficit in Sep 2016.
However, the outcome was on the lower side, as the trade deficit was $-1,436M in Sep 2016, compared with the previous month deficit of $-1,243M (revised). The report stated that “Meat and edible offal exports fell 15 percent ($235 million) in the September quarter. The fall in values, after adjusting for seasonal effects, was due to a 13 percent fall in the quantities exported”.
The result was not encouraging, but it failed to dent the NZD buyers’ sentiment, as the NZDUSD pair remained supported on the downside near 0.7150.
