It seems the NZ dollar cannot catch a break, with the commodity currency falling victim to another set of disappointing economic data out of NZ. This time around it was trade figures which sparked a sell-off in the NZD.
NZ’s July trade balance dropped to -692m from a revised 242m, missing an expected deficit of 475m. Exports fell 3.3% y/y to NZD3.7bn, which was more than the market was expecting (exp. 3.98bn). Exports are now at their lowest monthly balance in a year. Imports also missed their mark, but only slightly (4.4bn vs. and expected 4.48bn).
NZDUSD broke through some short-term support around 0.8330 on the back of today’s data. Yesterday, widespread USD strength and rumours of possible intervention from the RBNZ hit NZDUSD hard and it has been on the back foot ever since, apart from a brief recovery attempt.
Resistance
- 0.8370
- 0.8430 – top of short-term H&S pattern
- 0.8515 – horizontal support
Support
- 0.8310 – low since February
- 0.8245
- 0.8050 – yearly low
Source: FOREX.com
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