- New Zealand dollar had a good day against the US dollar, and it looks set for more gains in the near term.
- There is a bullish trend line formed on the 4-hours chart of the NZDUSD pair, which may act as a support if the pair moves down.
- New Zealand Trade balance report released by Statistics New Zealand pointed that the trade deficit was $-3.580B in January 2016.
- The New Zealand imports and exports were good, and posted better than expected forecast.
The New Zealand dollar traded to a new weekly high against the US dollar and tested the 0.6780 levels. There is a bullish trend line formed on the 4-hours chart of the NZDUSD pair, which acted as a support on many occasions earlier.
The NZDUSD pair is well above the 100 simple moving average on the 4-hours chart, which is a positive sign. If the pair corrects lower from the currents level, then a buy trade can be considered.
On the upside, a break above 0.6780 could take the pair towards 0.6800.
New Zealand Trade balance
The New Zealand Trade balance data, which highlights the difference between the value of country’s exports and imports was published by Statistics New Zealand. The market was expecting a trade deficit of $-3.840B in January 2016, but the outcome was above the forecast, as the trade deficit was $-3.580B.
The report highlighted that the “total value of goods imported in January 2016 was $3.9 billion, up $261 million (7.2 percent) from January 2015. The total value of goods exported was $3.9 billion, up $217 million (5.9 percent) from January 2015”.
Overall, the NZDUSD pair looks set for more gains, but there is a chance of a correction which may be seen as a buying opportunity.