NZD/USD: bears taking on 0.7220 support post trade balance miss
|NZD/USD has dipped in the open for the week on the back of poor exports in the trade balance released today for August.
NZD/USD has dropped from 0.7231 to print 0.7220 so far and is marking a new low for this montt. The trade balance came as -1265m and missing -735m, prior -433m. Milk powder exports dropped to the lowest level since August 2009.
Meanwhile, there is an air of bearishness around the antipodeans with risk-off mood setting in at Friday's close in the US and the bird has especially been softer on the back of the RBNZ's freshened signal that it is likely to cut in November, as noted by analysts at Westpac today, suggesting that during the month ahead another probe above 0.75 is possible. In respect of the cross, AUD/NZD could find support on RBA's governor Lowes speech later today should he include any further comments on monetary policy that to date suggest that he will not be in a hurry to achieve the 2-3pct inflation target by cutting interest rates.
Outlook for antipodeans - Westpac
NZD/USD levels
NZD/USD is at the lowest point since 30th August, trading below the cluster of 4hr ma's located at the 0.73 handle and below the 200 sma on the same time frame at 0.7290. 0.7220 is immediate support targeting 0.7204 and 30th Aug low for a break of the handle down to 0.7150 and 8th June highs. 0.7380 is upside resistance guarding 6th Sep highs of 0.7484.
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