- – The New Zealand Dollar is slowly moving lower from the 0.7460 swing high against the US Dollar.
- – There is a crucial bearish trend line forming with resistance at 0.7345 on the hourly chart of the NZDUSD pair.
- – Today in New Zealand, the Trade Balance report for Dec 2017 was released by the Statistics New Zealand.
- – The outcome was above the market forecast of $-125M as there was a trade surplus of $640M (MoM).
New Zealand Trade Balance
Today in New Zealand, the Trade Balance report for Dec 2017 was released by the Statistics New Zealand. The market was looking for a trade deficit of around $-125M in Dec 2017 compared with the previous month.
The actual result was above the market forecast of $-125M as there was a trade surplus of $640M (MoM). Looking at the yearly change, there was a trade deficit of $-2.840B, less than the last revised deficit of $-3.480B. The report added that:
Exports of milk powder, butter, and cheese lifted total exports to a record $5.6 billion in December 2017. Monthly exports were $1.1 billion higher than in December 2016.
The NZD/USD pair must stay above the 0.7300 support area to avoid further declines in the near term towards 0.7280.
NZD/USD Technical Analysis
The New Zealand Dollar recently traded above the 0.7400 resistance against the US Dollar. The NZD/USD pair traded as high as 0.7435 where it faced a strong resistance and it started a fresh downside wave below the 0.7400 level.
The pair declined and broke the 0.7360 support and the 100 hourly simple moving average. It recently tested the 0.7300 support and is currently correcting higher. It has moved above the 23.6% Fib retracement level of the last decline from the 0.7374 high to 0.7308 low.
On the upside, there is a crucial bearish trend line forming with resistance at 0.7345 on the hourly chart. The pair has to move above the 0.7350 resistance and the 100 hourly SMA to gain upside momentum.
On the downside, the pair must hold the 0.7300 support to avoid further declines in the near term. A break below 0.7300 could push the pair back toward 0.7260.
Also published on Medium.Tags: New Zealand Dollar, NZD/USD, NZD/USD Technical Analysis, US Dollar