NZD/USD confronts 8-week old resistance-line ahead of New Zealand trade balance


  • The greenback weakness paid off to the Kiwi without much to cheer at home.
  • New Zealand trade balance is in the spotlight with the US-China trade spat being on the radar.

With the US Dollar (USD) weakness helping the Kiwi to register a bounce off-late, the NZD/USD pair trades near 0.6520 at the start of the Asian session on Friday.

The US-China trade tensions grab the spotlight as neither party wants to give up on their demands. Nomura gives 65% probabilities that the US will levy tariffs on all Chinese goods by this year-end.

In addition to the trade war with China, sluggish new home sales and purchasing manager index (PMI) data also weighed on the US Dollar (USD) on Thursday. New home sales fell 6.9% while manufacturing PMI revisited September 2009 levels.

There were fewer positives from the domestic end of New Zealand.

Recent comments from the US President Donald Trump show his positive outlook towards meeting the Chinese leader Xi Jinping on the sidelines G20. Though, Mr. Trump doesn’t want to give up on his MAGA (make America great again) dream and is firm to keep Huawei on the check.

Immediate attention of the Kiwi traders will be on April month trade balance data, to be out at 22:45 GMT. Forecasts suggest $-5.465 billion trade balance (YoY) versus $-5.620 billion prior. Further, exports may flash $5.35 billion against $5.70 billion earlier whereas imports can rise to $4.90 billion compared to $4.77 billion earlier.

Ahead of the release, TD Securities said, “Apr trade balance is seasonally a surplus month, but follows a blockbuster +$NZ922m for March, led by record exports. We pencil in a surplus of +$NZ700m (mkt $NZ450m) as exports remain elevated ($NZ5.5b) but fuel imports ($NZ4.8b) eat into the surplus somewhat.”

Technical Analysis

A downward sloping trend-line since March 26 at 0.6530 gains immediate attention as a break of which could open the door for the quote’s extended recovery to 0.6580 and then to 0.6600 round-figure.

In a case of further weakness beneath 0.6480 support, October 2018 low near 0.6425 should gain bears’ attention.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD recovers post-Fed losses, awaits data

EUR/USD is trading close to 1.1050, up from the lows it fell to on Wednesday after the Fed cut rates but signaled no new moves are imminent. Markets are digesting the decision and eyeing several US figures.

EUR/USD News

GBP/USD stabilizes below 1.25 ahead of UK retail sales, BOE

GBP/USD is trading below 1.25, consolidating its losses after the US Fed cut rates as expected and indicated a pause. The Bank of England is set to leave rates unchanged. Beforehand, UK retail sales are due out.

GBP/USD News

USD/JPY keeps losses below 108.00 as BOJ disappoints the doves

USD/JPY keeps the losses below 108.00, as the Japanese Yen remains on the front foot in reaction to the Bank of Japan's (BOJ) status-quo that came in as a disappointment for the doves. 

USD/JPY News

Gold: Indecisive market, focus on today's close

Gold is currently trading at $1,480 per Oz, representing 0.21% drop on the day. On Wednesday, the yellow metal witnessed two-way business before ending the day with moderate losses at $1,494.

Gold News

Forex Today: Dollar surrenders post-Fed gains, Aussie and Bitcoin tumble, BOE in focus

The US dollar is off its highs against major pairs as markets digest the Federal Reserve's decision. The Fed cut rates by 25 basis points as expected and the dot-plot signaled no further cuts this year or the next.

Read more

Forex MAJORS

Cryptocurrencies

Signatures