NZD/USD Bulls cheer upbeat trade data, hits 7-week highs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The NZD/USD pair extends its bullish run into a third day this Friday, with the bulls bolstered by surprisingly positive NZ trade balance figures.

    NZD/USD trades above all major DMAs

    Currently, the NZD/USD pair jumps 0.52% to 0.6757, retreating from fresh seven-week peaks reached at 0.6674 post-China open. The bid tone surrounding the Kiwi even got better after the Asian indices joined the global rally, with the Chinese equities staging a solid comeback after yesterday’s almost 6% crash.

    The NZD/USD pair remains strongly bid as the New Zealand dollar received fresh impetus from the NZ trade balance unexpectedly jumped to surplus. The trade balance swung from a deficit of NZD38.0 mn in December to a surplus of NZD8.0 mn last month, much stronger than the forecast of a NZD 250 mn deficit.

    Meanwhile, markets continue to digest the positive economic news from OZ economy, while focus will remain on oil and stocks ahead of the US prelim GDP data.

    NZD/USD Levels to consider

    To the upside, the next resistance is located at 0.6774/88 (Daily High & R1), above which it could extend gains to 0.6846/50 (Jan 4 High/ psychological levels). To the downside immediate support might be located at 0.6705/01 (1h 20-SMA/ 5-DMA) and from there to 0.6671/62 (1h 100-SMA/ 10-DMA).
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