- – The New Zealand Dollar recently traded as low as 0.6848 against the US Dollar.
- – The NZD/USD pair recovered, but facing a major bearish trend line with resistance at 0.6880 on the hourly chart.
- – Today in New Zealand, the Trade Balance for March 2017 (MoM) released by the Statistics New Zealand posted a trade surplus of $332M.
New Zealand Trade Balance
Today in New Zealand, the Trade Balance for March 2017 (MoM) was released by the Statistics New Zealand. The market was positioned for a trade surplus of around $200M in March 2017, compared with the previous month.
However, the result better, as the New Zealand Trade Balance posted a surplus of $332M. Looking at the yearly change, there was a trade deficit of $-3.67B in March 2017, which was a bit lower than the last revised deficit of $-3.81B. The report stated that “Exports to China in the March 2017 month were valued at $1.1 billion, up $326 million (43 percent). Milk powder, butter and cheese (dairy), and lamb led the rise. Dairy rose $114 million and lamb rose $57 million”.
Overall, the NZD/USD pair may find it tough to move past the 0.6880 and 0.6900 resistance levels in the near term.
NZD/USD Technical Analysis
The New Zealand Dollar was under a lot of pressure lately, as it tumbled below the 0.6900 support against the US Dollar. The NZD/USD pair traded as low as 0.6848 before it started a recovery. It managed to move above the 23.6% Fib retracement level of the last decline from the 0.6967 high to 0.6848 low.
However, the upside move was contained by the 0.6880 and 0.6900 resistance levels. There is a major bearish trend line with resistance at 0.6880 on the hourly chart, which is acting as a strong barrier and preventing further gains.
Moreover, the pair is also struggling to move above the 38.2% Fib retracement level of the last decline from the 0.6967 high to 0.6848 low. So, there is a chance that the pair may move down once again to retest 0.6850. On the other hand, if NZD/USD manages to settle above 0.6900, it could open the doors for further upsides in the near term.Tags: New Zealand Dollar, New Zealand Trade Balance, NZD/USD Technical Analysis, US Dollar