Key Points
- The New Zealand Dollar declined recently towards 0.7200 against the US Dollar.
- There is a bearish trend line with resistance at 0.7230 forming on the hourly chart of NZDUSD.
- Today in New Zealand, the Trade balance for July 2017 was released by Statistics New Zealand.
- The outcome was above the forecast of $-200M, as there was a trade surplus of $85M (MoM).
NZDUSD Technical Analysis
The New Zealand Dollar faced a lot of sellers near the 0.7330-40 levels against the US Dollar. As a result, there was a sharp downside move in the NZDUSD pair, and it declined below the 0.7250 support and the 21 hourly simple moving average.
The pair traded as low as 0.7198 and currently attempting a recovery. On the upside, there is a bearish trend line with resistance at 0.7230 forming on the hourly chart.
Moreover, the 38.2% Fib retracement level of the last decline from the 0.7300 high to 0.7198 low might also act as strong barrier for further upsides in the near term.
New Zealand Trade Balance
Recently in New Zealand, the Trade balance for July 2017 was released by Statistics New Zealand. The market was positioned for a trade deficit of $-200M compared with the previous month.
The actual result was above the forecast of $-200M, as there was a trade surplus of $85M. The yearly change was also better than the forecast of $-3.507B, as there was a trade surplus of $-3.210B. The report stated that:
Exports rose $668 million (17 percent) in July 2017, compared with July 2016. The rise in exports was led by higher values across a variety of commodities, especially milk powder, butter, and cheese – up $426 million (51 percent).
Overall, the NZDUSD pair might recover in the near term, but it won’t be easy for buyers to break 0.7230.
