NZDUSD – Sellers Remain Active26 June, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, NZDUSD, Technical Analysis
- New Zealand Dollar after a monstrous decline traded higher towards 0.6900-20 where it once again found sellers.
- New Zealand Trade Balance released by the Statistics New Zealand registered a trade surplus of $350M in May 2015, compared with the forecast of a $-100M deficit.
- In Japan, the Jobs/applicants ratio, which is obtained by dividing monthly active job openings by monthly active applications released by the Japan Institute of Labour came in at 1.19 in May 2015, up from the last reading of 1.17.
New Zealand Trade Balance
Earlier during the Asian session, the New Zealand Trade Balance, i.e. a measure of balance amount between import and export was released by the Statistics New Zealand. The market was expecting a trade deficit of $-100M in May 2015, compared with the preceding month. However, the outcome was way above the forecast, as there was a trade surplus of $350M.
In terms of the yearly change, there was a trade deficit of $-2.57B in May 2015, compared with the same month a year ago, whereas the market was expecting $-2.90B. The last reading was revised to $-2.57B. Some of the main movers were milk powder, butter, and cheese exports, which declined by 28% ($346 million) and added to the fall.
Commenting on the report, the international statistics manager Jason Attewell, mentioned that “Despite dairy exports falling, they accounted for one-fifth of total goods exports in May. At its peak, dairy made up two-fifths of total goods exports”. Overall, the report was mixed, and failed to help the Kiwi Dollar in the short term.
NZDUSD Technical Analysis
The NZDUSD pair recently traded to a new 5-year low and fell to 0.6820. Later, it managed to recover some ground, and corrected higher. There was a bearish trend line formed on the hourly chart, which prevented the upside and stalled gains. The most important point is that the 200 hourly simple moving average is also aligned around the same trend line to act as a barrier.
On the downside, the 100 hourly MA is providing support to the NZDUSD pair. So, the pair is stuck between two important levels, and it might be that we witness a short-term consolidation moving ahead before sellers step in one more time.