The New Zealand Dollar (NZD) fell broadly against the US dollar (USD) on Monday, dragging the price of NZDUSD to less than 0.7275, following the release of some key economic news. The technical bias however remains bullish because of a higher high and higher low in the ongoing upside rally.
As of this writing, the pair is being traded around 0.7256. A hurdle can be noted near 0.7300-0.7309, the confluence of psychological number as well as swing high of the recent upside wave as demonstrated in the given below daily chart. A break and daily closing above the 0.7309 resistance area shall incite renewed buying interest, validating an upside rally towards the 0.7403 resistance zone.
On the downside, a support can be noted around 0.7231, the intraday low of yesterday ahead of 0.7171, the 50% fib level and then 0.6969, the horizontal support area. The technical bias shall remain bullish as long as the 0.6857 support area is intact.
New Zealand Import/Export Data
Today, the New Zealand Trade Balance, which is a measure of balance amount between import and export was released by the Statistics New Zealand. The market was looking for a trade deficit of $-50M in Dec 2016, compared with the previous month. However, the result was mixed, as the trade deficit was $-41M in Dec 2016. The yearly change was $-3.20B, just as the last revised reading. The report added that the “total value of all export goods was $48.4 billion for the year ended December 2016, down $544 million from the previous year. This is the second annual fall in a row for exports. The latest annual total is $1.6 billion less than the high of the 2014 year”.
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.