New Zealand Dollar moved lower after the RBNZ announced the interest rates.
NZDUSD pair broke a major support trend line on the hourly chart, which is now acting as a resistance.
Today, the RBNZ Interest Rate Decision was announced by the Reserve Bank of New Zealand in which the central bank kept the rates at 2.5%.
The New Zealand Trade Balance released by the Statistics New Zealand posted a trade deficit of $-53M in December 2015, compared with the preceding month.
In terms of the yearly change, the New Zealand Trade Balance posted a trade deficit of $-3.549B.
NZDUSD Technical Analysis
The NZDUSD pair was down after the rate decision, as sellers got a reason to weaken the pair. There was a major support trend line on the hourly chart, which was broken during the downside drift.The pair traded as low as 0.6410, and after the release of the Trade Balance report, the NZDUSD pair gained bids.However, the broken trend line is now acting as a resistance and preventing gains. It looks like the pair may break it to move higher, but might face sellers once again near the 0.6460 level. The 200 hourly simple moving average is positioned around the stated level.
RBNZ Interest Rate Decision
Today, the RBNZ Interest Rate Decision was announced by the Reserve Bank of New Zealand. The market was not expecting any change in rates of 2.5%. The result was as expected, as the central bank kept rates at 2.5%. However, the dovish tone of the central bank pushed the Kiwi Dollar down.
New Zealand Trade Balance
Moreover, the Trade Balance, which is a measure of balance amount between import and export was released by the Statistics New Zealand. The forecast was lined up for deficit of $-131M in December 2015, compared with the preceding month. However, the result was better, as the deficit was $-53M in December 2015.In terms of the yearly change, the market was aligned for a trade deficit of $-3.590B in December 2015, compared with the same month a year ago. However, the result was above the forecast, as the trade deficit was $-3.549B. The report added that “Despite the fall in the value of dairy exports, the quantity of milk powder, butter, and cheese rose to a new record high of 2.9 million tonnes (up 2.9 percent from the previous high in 2014)”.
The pair traded as low as 0.6410, and after the release of the Trade Balance report, the NZDUSD pair gained bids.However, the broken trend line is now acting as a resistance and preventing gains. It looks like the pair may break it to move higher, but might face sellers once again near the 0.6460 level. The 200 hourly simple moving average is positioned around the stated level.