NZDUSD Nervous Post Trade Balance Report

1
17417
  • New Zealand Dollar managed to correct higher recently after declining sharply and creating a new 5-year low.
  • New Zealand Trade Balance was released by the Statistics New Zealand during the Asian session, which posted a trade surplus of $350M in May 2015, compared with the preceding month.
  • NZDUSD has a major resistance formed around 0.6900, which might be seen as a pivot area.
  • New Zealand Trade Balance

    Today in the New Zealand, there was a major event lined up as the Trade Balance report, which helps in measuring the balance amount between import and export was published by the Statistics New Zealand. The forecast was not lined up for a trade surplus, and the expectation was of a trade deficit of $-100M in May 2015, compared with the previous month. However, the result was on the higher side, as there was a trade surplus of $350M.

    When we look at the yearly change data, then there was a trade deficit of $-2.57B in May 2015, compared with May 2014. This was also on the higher side, as the forecast was $-2.90B. One key point to note was the fact that the decline in the trade was mainly driven by milk powder, butter and cheese exports. All accounts a fall of more than 25%, which was a negative signal to traders.

    Looking at the exports, it came in at $4.36B, which was on the higher side compared with the forecast of $4.27B. Overall, the outcome was not motivating, and the result was visible for NZDUSD.

    NZDUSD Reaction

    There was a minor decline noted in the NZDUSD pair after the release. The 55 simple moving average on the 4-hours chart acted as a barrier for the pair and prevented the upside earlier. If sellers manage to take the pair lower, then a retest of 0.6860 is possible moving ahead.
    On the upside, buyers need a 4H close above 0.6920 for more control.

    Click To Join Our Community Telegram Group

    Subscribe
    Notify of
    guest

    1 Comment
    Newest
    Oldest Most Voted
    Inline Feedbacks
    View all comments
    Prof. Salam
    Prof. Salam
    6 years ago

    Need pre-entry time. I have got analysis
    Today 25/10/17 at 10: 57 in the mean time aid bulish completed.