NZD/USd consolidates between support 0.6780 and resistance 0.6920
- NZ trade's seasonal trade to improve?
- NZD/USD consolidates between key support/resistance.
NZD/USD is consolidated in thin markets and without impetus although the borader picture is for a gradual squeeze higher in Kiwi continues while short positioning is unwound. Currently, NZD/USD is trading at 0.6887, down -0.07% on the day, having posted a daily high at 0.6896 and low at 0.6886. However, in early Asia, we had New Zealand's trade deficit released that narrowed to $871m in October. Excluding the import of a large aircraft, the result was close to our forecast of a $600m deficit.
NZD trade's seasonal adjustments
Analysts at Westpac explained that in seasonally adjusted terms, export earnings rose by 5% for the month. "We expect some improvement in the trade balance over the next year. Dairy export volumes have been held back by poor weather in the early part of the dairy season. But with milk collections now up on last year's pace, we expect this to flow through into stronger export shipments by early next year," the analysts added.
With markest in consolidation, the technical picture remains the same and the daily RSI is unwinding oversold conditions while the monthly technicals are bearish pointing to a period of consolidation. Key support comes at 0.6780 while resistance is located at 0.6920 above the 100 4-hr SMA at 0.6886. 0.6980 as the 9th Nov top opens 11th Oct support level of 0.7054 as a key target.