NZD/USD awaits China trade data

By FXStreet FXStreet (Guatemala) – NZD/USD is currently trading at 0.6536 with a high of 0.6547 and a low of 0.6529 in early Asia.

NZD/USD has not got anything domestic on the calendar for it in this session ahead, but the China trade balance has the ability to shake things up. The manufacturing sector has been a area of contraction in the economy of China and exports are unlikely to be recovering with such little output and, despite the Yuan’s depreciation.

On the other hand, Imports could have suffered on the Chinese currency. Either way, the bird is attempting to consolidate the downside but, recovery attempts are shallow and capped by the 50 sma on the hourly chart. Fundamentally, the prospects for interest rate cuts are growing and the divergence between the Fed and RBNZ weighs on bird.

NZD/USD levels

Technically, the aforementioned 1hr sma 50 at 0.6547 is first resistance ahead of 0.6590 and the 20 sma on the 4hr chart at 0.6562. The recovery from November’s business and 0.6428 low has been met with strong supply and has been eroded by 2/3rds already 0.6870 to current lows of 0.6508.
For more information, read our latest forex news. …read more

Source:: FX Street