NZD/USD Forecast – New Zealand Upsides Remain Limited Vs US Dollar

NZD/USD Forecast – New Zealand Upsides Remain Limited Vs US Dollar

  • – The New Zealand Dollar is under heavy selling pressure and moved below 0.7000 against the US Dollar.
  • – The NZDUSDF pair is currently attempting an upside break above the 0.6900 on the hourly chart.
  • – Today in New Zealand, the Trade Balance report for Sep 2017 was released by the Statistics New Zealand.
  • – The outcome was below the forecast of $-900M, as there was a trade deficit of $-1,143M (MoM).

 

New Zealand Trade Balance

Today in New Zealand, the Trade Balance report for Sep 2017 was released by the Statistics New Zealand. The market was looking for a trade deficit of $-900M compared with the previous month.

 

The actual result was below the forecast of $-900M, as there was a trade deficit of $-1,143M. Looking at the yearly change, the market was looking for a trade deficit of $-2.706B, but it came in at $-2.910B. The report added that:

 

Milk powder, butter, and cheese exports rose $175 million in September 2017 to reach $791 million, up 28 percent on the same month last year. Overall goods exports rose $313 million (9.0 percent) to $3.8 billion, mainly driven by milk powder, butter, and cheese.

 

Overall, the NZD/USD pair might continue to face sellers in the near term towards 0.6900 and 0.6920.

 

NZD/USD Technical Analysis

The New Zealand Dollar remains in a major downtrend from the 0.7180 swing high against the US Dollar. The NZD/USD pair started a downside wave and broke a few important supports such as 0.7120, 0.7050 and 0.7000.

 

NZD/USD Technical Analysis New Zealand Dollar US Dollar

 

The pair even traded below the 0.6940 support and settled below the 100 hourly simple moving average. A low was formed recently at 0.6860 from where the pair is currently attempting an upside correction.

 

An initial resistance is around the 23.6% Fib retracement level of the last decline from the 0.7003 high to 0.6860 low. At present, it seems like the pair is attempting an upside break above the 0.6900 on the hourly chart. It might fail to gain traction above 0.6920 and the 50% Fib retracement level of the last decline from the 0.7003 high to 0.6860 low.

 

Overall, the pair remains in a downtrend and remains sell on rallies close to the 0.6920 level in the near term.

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