NZDUSD Hovers Near Major Resistance26 August, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, NZDUSD, Technical Analysis
- New Zealand Dollar after a monster decline found support near 0.6200 against the US Dollar.
- NZDUSD is correcting higher, but facing sellers around an important pivot area of 0.6500-40.
- New Zealand Trade Balance released by the Statistics New Zealand registered a trade deficit of $-649M, higher compared with the forecast of $-600M.
- In terms of the yearly change, the trade deficit was of $-2.69B in July 2015.
NZDUSD Technical Analysis
There was a major downside reaction in NZDUSD recently, which took the pair towards 0.6200. Buyers appeared around the stated level to prevent weakness and pushed the pair higher. The pair has corrected more than 50% of losses and is trading near a major resistance area.
The 0.6500-20 area was one a critical support and now it is acting as a resistance area. The 61.8% Fib retracement level of the last drop from the 0.6703 high to 0.6194 low is also positioned around the same area. So, buyers might struggle to take the pair above it in the near term.
There is also a bearish trend line formed on the daily chart, which is likely to act as a swing area if the NZDUSD pair climbs further from the current levels.
New Zealand Trade Balance
Earlier during the Asian session, the New Zealand Trade Balance, which is a measure of balance amount between import and export was released by the Statistics New Zealand. The forecast was lined up for a trade deficit of $-600M in July 2015, compared with the preceding month. However, the outcome was lower compared with the forecast, as New Zealand Trade Balance came in at $-649M.
In terms of the yearly change, the New Zealand Trade Balance posted a trade deficit of $-2.69B, lower compared with the last deficit of $-2.85B in July 2015. Imports grew rose $221 million, which is 4.8% to $4.8 billion in July 2015, compared with the same month a year ago and exports increased $176 million.
Commenting on the release, the international statistics senior manager, Jason Attewell stated that “the small rise in dairy export values combined with the falling New Zealand dollar contributed to the rise in total exports value this month”.