New Zealand Dollar traded higher and cleared a major resistance area against the US Dollar.
There was a nice bullish momentum, which favored more gains in the NZDUSD pair.
New Zealand Trade balance, released by Statistics New Zealand posted a trade deficit of $-3.580B in Jan 2016, compared with the forecast of $-3.840B.
New Zealand imports and exports came in at $3.89B and $3.90B respectively in Jan 2016.
NZDUSD Technical Analysis
The New Zealand dollar traded higher and tested the 0.6770 resistance area against the US Dollar. There was a bearish trend line on the hourly chart, which was broken by buyers to take the pair higher in the near term.The NZDUSD pair is well above the 100 and 200 hourly simple moving average, which is a positive sign and suggesting that buyers are in control as of writing.On the upside, a test of 0.6800 level is possible in the short term, and on the downside the 0.6740-20 area may act as a support.
US GDP
Today, there is a crucial release in the US, as the Gross Domestic Product Annualized report will be reported by the US Bureau of Economic Analysis. The forecast is slated for a rise of 0.4% in the GDP in Q4 2015, compared with the preceding quarter.
New Zealand Trade balance
Today, the New Zealand Trade balance, which is the difference between the value of country's exports and imports was released by Statistics New Zealand. The forecast was slated for a trade deficit of $-3.840B in Jan 2016, compared with the same month a year ago.However, the outcome was positive, as the New Zealand trade balance registered a better than expected reading and came in at $-3.580B in Jan 2016. New Zealand imports and exports came in at $3.89B and $3.90B respectively, which were again better than the forecast.The report added that “biggest rise in imports was in intermediate goods, up $140 million (8.9 percent). This was followed by a large rise in consumption goods imports, up $111 million (12 percent). Imports of capital goods fell $34 million (4.4 percent)”.Overall, the NZDUSD gained, and if it corrects lower from the current levels, then it may find buyers on the downside.
The NZDUSD pair is well above the 100 and 200 hourly simple moving average, which is a positive sign and suggesting that buyers are in control as of writing.On the upside, a test of 0.6800 level is possible in the short term, and on the downside the 0.6740-20 area may act as a support.
The report added that “biggest rise in imports was in intermediate goods, up $140 million (8.9 percent). This was followed by a large rise in consumption goods imports, up $111 million (12 percent). Imports of capital goods fell $34 million (4.4 percent)”.Overall, the NZDUSD gained, and if it corrects lower from the current levels, then it may find buyers on the downside.