Key Points
- The New Zealand dollar struggled recently against the US Dollar and traded below 0.7260.
- There was a bullish trend line break at 0.7260 on the hourly chart of NZDUSD, and the pair is currently attempting another break at 0.7240.
- Today, the New Zealand Trade Balance report was released by the Statistics New Zealand.
- The result was mixed, as the trade deficit was $-41M in Dec 2016, compared with the previous month.
NZDUSD Technical Analysis
The New Zealand Dollar after trading as high as 0.7312 against the US Dollar found sellers, and moved down. There was break below a bullish trend line break at 0.7260 on the hourly chart of NZDUSD, which opened the doors for more losses.
The pair also broke the 21 hourly simple moving average at 0.7250, and currently attempting to break another bullish trend line at 0.7240.
If the NZD sellers succeed in breaking the trend line support at 0.7240, we can witness a decline towards 0.7200 in the short term.
New Zealand Trade Balance
Today, the New Zealand Trade Balance, which is a measure of balance amount between import and export was released by the Statistics New Zealand. The market was looking for a trade deficit of $-50M in Dec 2016, compared with the previous month.
However, the result was mixed, as the trade deficit was $-41M in Dec 2016. The yearly change was $-3.20B, just as the last revised reading. The report added that the “total value of all export goods was $48.4 billion for the year ended December 2016, down $544 million from the previous year. This is the second annual fall in a row for exports. The latest annual total is $1.6 billion less than the high of the 2014 year”.
Overall, the New Zealand Dollar remains under a bearish pressure, and likely to move down in the short term towards 0.7220-0.7200.
