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27 Jun 2013
NZD/USD, short-lived dip on worsening NZ trade balance
FXstreet.com (Barcelona) - The NZD/USD is trading on a bearish tone following the release of the <a href="http://www.fxstreet.com/fundamental/economic-calendar/event.aspx?id=9a7752ce-7d40-4b9e-b821-ab0948ccc220">New Zealand trade balance, in which the trade superavit shrunk significantly to 71 million NZD.
New Zealand trade balance downbeat
The trade balance (MoM) in the month of May came at $71M vs $400M expected and $157M last. On a yearly basis, May stood at $ -0.87B vs $-0.52B expected and $-0.69B last. The major contributor to the change in the trade balance were the decrease in exports, which stood at $ 4.08B v $4.45B expected and $3.95B last. Meanwhile, the imports were pretty much flat at $4.01 vs $4.05B expected and $3.80B prior.
Technical outlook
On the back of a 6-day range breakout, the NZD/USD found intensive selling pressure just above 0.7850, taking the rate back below key technical breakout point at 0.7790/0.78. At the moment, a return to 0.7750 - last European base - should be the first target for sellers ahead of deeper retracement to 0.77 round number. On the contrary, an acceleration higher sees the challenge of breaking thru 0.78 first to then build on recent gains targeting recent highs at 0.7850/60 ahead of 0.79 - June 13 swing low - and followed by 0.7950 - June 18 lows -.
New Zealand trade balance downbeat
The trade balance (MoM) in the month of May came at $71M vs $400M expected and $157M last. On a yearly basis, May stood at $ -0.87B vs $-0.52B expected and $-0.69B last. The major contributor to the change in the trade balance were the decrease in exports, which stood at $ 4.08B v $4.45B expected and $3.95B last. Meanwhile, the imports were pretty much flat at $4.01 vs $4.05B expected and $3.80B prior.
Technical outlook
On the back of a 6-day range breakout, the NZD/USD found intensive selling pressure just above 0.7850, taking the rate back below key technical breakout point at 0.7790/0.78. At the moment, a return to 0.7750 - last European base - should be the first target for sellers ahead of deeper retracement to 0.77 round number. On the contrary, an acceleration higher sees the challenge of breaking thru 0.78 first to then build on recent gains targeting recent highs at 0.7850/60 ahead of 0.79 - June 13 swing low - and followed by 0.7950 - June 18 lows -.