NZD/USD seesaws near 2-week high ahead of New Zealand trade balance

NZD/USD remains upbeat ahead of the monthly trade balance data from New Zealand on early Tuesday.  |  24/06/2019 21:40
  • The aftershocks of the FOMC-led greenback declines persist.
  • Monthly trade balance data is on the spotlight.

With the US Dollar (USD) continue to bear the burden of soft activity data and the aftershocks of the FOMC-led pessimism, the NZD/USD carries its latest recovery to a fortnight high while clocking in 0.6617 at the start of Tuesday’s Asian trading session. Traders might now focus on monthly trade balance statistics from New Zealand, up at 22:45 GMT, for fresh impulse.

The fresh week couldn’t change the investor outlook towards the greenback as the US President Donald Trump’s comments conveying disappointment from the Federal Reserve and the sluggish print of the Dallas Fed Manufacturing Business Index added worries on to the US currency traders.

On the US-China trade front, media houses at China kept sending worrisome signals ahead of the much awaited G20 meeting while lawmakers did expect normal trade talks between the world’s two largest economies.

With no major data at home, USD weakness was well cheered by the commodity-linked currencies despite looming monetary policy easing at home.

Additionally, better than forecast Credit Card Spending data from New Zealand provided another reason for the Kiwi traders to remain optimistic.

Immediate attention of the New Zealand Dollar (NZD) traders will be on the May month trade balance data.  Forecasts suggest the YoY figure to register an increase to $-5.325 billion from $-5.480 billion in headline trade balance whereas the monthly format is expected to rise to $971 million from $433 million. It should also be noted that imports marked $5.11 billion and exports were $5.55 billion during previous releases.

Technical Analysis

Having breached 50-day simple moving average (SMA), buyers are now targeting the monthly highs around 0.6682 while 0.67000 comprising 100-day SMA could become their next landmark.

On the other hand, 0.6589 figure of 50-day SMA acts as immediate support, a break of which can recall 0.6560 and 0.6515 back to the chart.

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