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NZD/USD unchanged on mildly bullish trade balance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - NZD/USD is steady after the release of the NZ trade balance in a consolidated market place. The trade numbers were mildly positive $-3.679b vs $-3.76 expected y/y while m/m came as $-779m vs $-809.5m and improved on previous $-963.0m.

    Price action wise, nothing on the release, but the bird has had its wings clipped meeting resistance at 0.6835 on the minor recovery from 0.6688. The psychological 0.6800 level is supporting for the time being having been in a drift overnight from aforementioned highs.

    As for the outlook as we head towards 2016 business, analysts at Westpac mentioned earlier that the New Zealand economy was losing momentum and are predicting that the RBNZ will indeed have to cut rates again.

    Last Friday, FXStreet hosted a special event about what 2016 might hold for the Forex traders. The panelists were Ashraf Laidi, Boris Schlossberg, Adam Button and Valeria Bednarik. Today, we want to share with you the recording of the whole show. Watch now and look out for commentary around the Fed and the possible headwinds from China in the currency wars.

    Adam Button, MD at Forexlive said, “Central bankers are trying to fight low commodity prices in a currency war. Maybe the currency wars are not worth fighting,” while Ashraf Laidi, founder of Intermarket Strategy Ltd added, said, “Those who say Chinese currency is already devalued, well, I don’t know what they are smoking. CNY has gone 65% up against the yen. China's currency will depreciate vs a basket of currencies and then all hell will break lose.”

    NZD/USD levels

    Technically, momentum is lower and RSI on the shortterm has moved to neutral. S1 is at 0.6145, S2 at 0.6728 and S3 at 0.6711. On the wide, through R23 at 0.6840, the price targets the 0.6863 mark where the 200 DMA is located and to the downside, the 100 DMA at 0.6558 through the cluster of MA's guards the Nov lows at 0.6489.
    For more information, read our latest forex news.
     

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