NZD/USD – New Zealand Dollar Turns Bullish Vs US Dollar
Aayush Jindal
Key Highlights
The New Zealand Dollar broke a monster resistance at 0.6950 against the US Dollar to move into the bullish zone.
The NZD/USD pair cleared an ascending channel pattern with resistance at 0.6980 to set the pace for more gains.
Today in New Zealand, the Trade Balance for April 2017 released by the Statistics New Zealand posted a trade surplus of $572M, more than the forecast of $268M.
In terms of the yearly change, the trade deficit was $-3.48B, compared with the last $-3.71B (revised).
NZD/USD Technical Analysis
A major shift in the momentum noted for the New Zealand Dollar once it broke 0.6950 against the US Dollar. The NZD/USD pair is now trading with a positive bias, and looking to extend gains above 0.7000.The pair after forming a base near 0.6820-50 started an uptrend. During the upside move, it broke many important resistances, including 0.7000.It is now positioned above the 76.4% Fib retracement level of the last decline from the 0.7052 high to 0.6820 low. A close above the 100 and 200 simple moving averages (H4) and 0.6950 is a positive sign.The pair also cleared an ascending channel pattern with resistance at 0.6980. Overall, NZD/USD may continue to gain, and the next stop could be near 0.7107, which is the 1.236 extension of the last decline from the 0.7052 high to 0.6820 low.
New Zealand Trade Balance
Today in New Zealand, the Trade Balance report for April 2017 was released by the Statistics New Zealand. The forecast was lined up a trade surplus of $268M in April 2017, compared with the previous month.The result was better, as the trade surplus was $572M. Looking at the yearly change, the trade deficit was $-3.48B, compared with the last $-3.71B (revised). Imports of goods and services in April were $4.17B, less than the last revised $4.33B, and Exports were $4.75B. The report mentioned that “April's goods trade surplus was the largest monthly surplus since March 2015 and the largest April surplus since April 2011. Easter fell in April this year, but the holiday appeared to have little impact on exports. Both exports and imports reached new highs for an April month”.The New Zealand traded a few pips lower, but found support near 0.7000.
Economic Releases to Watch Today
Germany’s GfK Consumer Confidence for June 2017 – Forecast 10.2, versus 10.2 previous.
US Existing Home Sales for April 2017 (MoM) - Forecast -1.1%, versus +4.4% previous.
US House Price Index for March 2017 (MoM) - Forecast +0.6%, versus +0.8% previous.
BoC Interest Rate Decision – Forecast 0.5%, versus 0.5% previous.
The pair after forming a base near 0.6820-50 started an uptrend. During the upside move, it broke many important resistances, including 0.7000.It is now positioned above the 76.4% Fib retracement level of the last decline from the 0.7052 high to 0.6820 low. A close above the 100 and 200 simple moving averages (H4) and 0.6950 is a positive sign.The pair also cleared an ascending channel pattern with resistance at 0.6980. Overall, NZD/USD may continue to gain, and the next stop could be near 0.7107, which is the 1.236 extension of the last decline from the 0.7052 high to 0.6820 low.
The New Zealand traded a few pips lower, but found support near 0.7000.