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Dec 08, 2016

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Market Analysis

Home » Featured » NZDUSD Eyeing Short-term Break

NZDUSD Eyeing Short-term Break

Posted by FXTimes in Featured - March 16th, 2016 11:54 am GMT

New Zealand dollar NZDUSD

Key Points

  • New Zealand Dollar after trading as low as 0.6577 against the US dollar found bids and started to correct higher.
  • There is a bearish trend line formed on the hourly chart of the NZDUSD pair, which is broken may take the pair higher.
  • Today, the New Zealand Current Account released by the Statistics New Zealand registered a trade deficit of $-2.614B in Q4 2015, which was lower as the forecast was $-2.80B.
  • New Zealand Current Account GDP Ratio also was above the forecast, and registered a decrease of -3.1%.

Technical Analysis

The New Zealand Dollar fell against the US dollar recently to trade near 0.6570-80 support area where the bulls somehow managed to protect losses. There is a bearish trend line formed on the hourly chart of the NZDUSD pair, which is acting as a resistance and preventing gains.

NZDUSD

A break above the highlighted trend line and resistance area could take the pair towards the 100 hourly simple moving average.

If the bulls fail to take the pair higher, then a move back towards the 0.6570 is possible in the near term.

New Zealand Current Account

Earlier during the Asian session, the New Zealand Current Account, pointing towards a net flow of current transactions, including goods, services, and interest payments was reported by the Statistics New Zealand. The market was aligned for a trade deficit of $-2.80B, but the result was better. The trade deficit was $-2.614B in Q4 2015.

The report added “New Zealand’s seasonally adjusted current account balance was a deficit of $1,948 million in the December 2015 quarter ($221 million larger than the September 2015 quarter deficit). The services surplus decreased for the first time since the December 2013 quarter, down $14 million to $977 million in the latest quarter”.

Overall, the NZDUSD pair may move down once again if the bulls fail to break the highlighted trend line and resistance area.

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