NZD/USD consolidates the downside post-mixed NZ trade

Bulls looking to find some reprieve from the New Zealand trade surplus beat.
But further downside still in play heading into US-China trade talks and FOMC verdict.

Dhwani Mehta FXStreet

The NZD/USD pair stalled its downslide and managed to regain minor bids after the sellers took a breather following the release of upbeat New Zealand’s trade figures.
New Zealand trade balance for December arrived at +264m vs. 150m surplus expected while the exports also bettered estimates.

However, the bulls are seen struggling hard to attempt a recovery as New Zealand trade report showed the annual trade deficit stood at $5.9 billion for the December 2018 year, the highest deficit in eleven years.

Moreover, the risk-off action seen on the US equity markets amid looming US-China trade talks, and Fed rate pause risks will continue to undermine the sentiment around the higher-yielding Kiwi.

Meanwhile, broad-based US dollar weakness amid expectations of a dovish FOMC statement somewhat helps keep the downside limited in the major. The USD index meanders near nine-day lows of 95.64.

With the NZ trade data out of the way, markets remain focussed on the US CB consumer confidence and the FOMC decision for fresh trading impetus. Meanwhile, the US-China trade-related developments will continue to have a major bearing on the pair.

NZD/USD Technical Levels

NZD/USD

Overview:
    Today Last Price: 0.6829
    Today Daily change: -21 pips
    Today Daily change %: -0.31%
    Today Daily Open: 0.685
Trends:
    Daily SMA20: 0.676
    Daily SMA50: 0.6794
    Daily SMA100: 0.6698
    Daily SMA200: 0.6769
Levels:
    Previous Daily High: 0.6852
    Previous Daily Low: 0.6747
    Previous Weekly High: 0.6852
    Previous Weekly Low: 0.6706
    Previous Monthly High: 0.697
    Previous Monthly Low: 0.6686
    Daily Fibonacci 38.2%: 0.6812
    Daily Fibonacci 61.8%: 0.6787
    Daily Pivot Point S1: 0.6781
    Daily Pivot Point S2: 0.6711
    Daily Pivot Point S3: 0.6676
    Daily Pivot Point R1: 0.6886
    Daily Pivot Point R2: 0.6921
    Daily Pivot Point R3: 0.6991

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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