NZD/USD is currently consolidating the downside as we head in towards the closing session for the week in Asia.
Commodities have been the driver, along with the greenback, helping the bears back below the 0.67 handle from recent 0.6874 highs. The data has been mixed this week from both New Zealand and the US, while Fed speaker have been seemingly looking to reverse the trend in rate hike expectations in the markets, after a dovish delivery from the FOMC last week.
Analysts at TD Securities explained that the NZ trade balance came in close to TD expectations for a NZ$400m surplus at NZ$340m, well above mkt +NZ$90m. ” A positive outcome given weak dairy prices and supports the GDP pick up seen late last year.”
Meanwhile, US durable goods were not received very well and puts a dark cloud over tomorrow’s GDP. On Monday, we have the US PCE for February out on Monday, then we will soon be turning heads towards US nonfarm payrolls:
Nonfarm payrolls to come in trend – ING
NZD/USD levels
The price remains bearish within the descending and steep channel while below the 10 dma at 0.6721 and 20 dma at 0.6710. The major support is located at the 200 sma on the 4hr at 0.6685 while a break up through the converging 100 and 50 sma on the same time frame opens up 0.6780.
(Market News Provided by FXstreet)