NZ trade balance preview: What to expect of NZD/USD

By FXStreet FXStreet (Córdoba) – New Zealand trade balance figures are due for release early during the Asian session, at 21:45 GMT. The expectations are for a NZD 800 million deficit in September, following a NZD 1.035 billion deficit the previous month.

A weaker than expected release should weigh on the NZD, while a stronger should have the opposite effect. However, import and export outlier figures could also have impact on the kiwi.

Later this week, the Reserve Bank of New Zealand will decide on monetary policy, with analysts spllt on whether the bank will ease its policy further. The RBNZ has already cut its key interest rate 3 times since June, from 3.5% to current 2.75% to combat the effects on the real economy of the slump in key export prices, and to weaken the NZD.

NZD/USD technical levels

As for technical levels, NZD/USD could find immediate resistances at 0.6792 (Oct 26 high), 0.6865 (Oct 23 high) and 0.6897 (Oct 15 high). On the flip side, a break below 0.6698 (Oct 21 low) would open the way to 0.6609 (100-day SMA) and 0.6563 (50% Fibo retracement of 0.6236/0.6898).

For more information, read our latest forex news. …read more

Source:: FX Street