NZD slips on trade data

The New Zealand economy looks to be taking a hit, with trade balance data coming in much weaker than expected at -113M (200M exp), showcasing that the NZ economy is still looking sluggish compared to the rest of the world. This was further impacted by export receipts dropping as well to 4.91B (5.06B exp) which will weigh heavily on the Reserve Bank of New Zealand (RBNZ), as it looks to stimulate the economy. Given the recent changes to make sure employment becomes a key focus, it is likely to keep rates flat for some time in order to make sure businesses are able to thrive in the current environment. It will also give the RBNZ a good case to talk down the NZD when compared to the USD as a fall would help boost export receipts and the trade balance data at present.

On the charts, it was not a big move, but it was one still the less. With the ever weaker economic data and strong USD, it seems likely that the bears will look to maintain control and may look to push things lower, despite the market stagnating for a bit. With that in mind, support levels at 0.6755 and 0.6691 will be the key focus for bearish traders looking to make a push. If we the bulls come back into the market expect a surge to resistance at 0.6819 and 0.6859, but I would be careful about 0.6819 breaking anytime soon as it has seen of a bullish push only last week around this level. The 20-day moving average is also worth taking note as the market is sometimes treating it as a dynamic level when lacking further information.