FXStreet (Guatemala) – NZD/USD is currently trading at 0.6894 with a high of 0.6921 and a low of 0.6863.
NZD/USD bulls are slightly relieved having lost ground at the start of early Asia to now making some of that ground back on a much better trade balance for the month of May ending with a surplus instead of the consensus of a deficit.
There was a 350m surplus vs the expected -100m. Prior was +183m which was revised from +123m. The price has spiked up and away from the aforementioned lows but price still remains below the 0.69 handle despite a very short-lived spell back in to less negative territory above the figure.
The bearishness around the bird today comes with the RBNZ who have confirmed in a statement that large falls in dairy prices offer headwinds to growth while they were also jawboning the currency lower by saying in the same statement that it is still at unjustifiable levels. This caused the sharp early decline in Asia today.
On further downside that could arise next week if the bird can not manage a close back in to neutral territory on the 0.69 handle this week, the June 2010 lows of 0.6793 are in sight. 0.7000 would need to be taken back to alleviate downside pressures that eye the 0.65 handle.
(Market News Provided by FXstreet)