- New Zealand Dollar traded higher against the US dollar during the Asian session, but failed to retain momentum.
- There was a major bullish trend line formed on the hourly chart, which was breached recently to ignite the downside move.
- New Zealand Trade Balance by Statistics New Zealand posted a trade deficit of $-3.678B in November 2015, which was better compared with the forecast of $-3.760B.
- NZDUSD is trading lower and it looks set for more declines in the near term.
The NZUDSD pair may have created a short-term top near 0.6820-30 levels. There was a bullish trend line formed on the hourly chart, which was broken recently and may encourage sellers to take the pair further lower.
Currently, the 50 hourly simple moving average is acting as a support area, but if sellers manage to break it, then a move towards the 100 MA is possible. The 61.8% Fib retracement level of the last move from the 0.6762 low to 0.6839 high may also act as an intermediate support.
On the upside, the broken trend line and support area may act as a resistance and selling area.
New Zealand Trade Balance
Today there was a major release in New Zealand, as the Trade balance report, highlighting the difference between the value of country’s exports and imports was published by Statistics New Zealand. The forecast was lined up for a trade deficit of $-3.760B in November 2015. However, the result was a bit better, as the trade deficit was of $-3.678B.
The report highlighted that “the value of total goods imported was $4.9 billion in November 2015, up $535 million (12 percent) from November 2014”.
Overall, the report helped the NZDUSD pair to gain traction as it traded towards 0.6820-40. However, the stated level proved vital and ignited a downside move. Selling rallies in the near term may be a good call.