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18 Mar 2015
NZD/USD rejected at 5-DMA, drops below 0.73
FXStreet (Mumbai) - NZD/USD fell in to red in the late Asian session, back on the 0.72 handle, extending its side trend from the previous session as markets digest downbeat NZ trade data ahead of FOMC and NZ GDP numbers.
NZD/USD turns lower, FOMC in focus
Currently, the NZD/USD pair trades lower near session lows at 0.7294, having previously posted day’s high at 0.7319. NZD/USD gave back gains and edged lower as the kiwi remains pressured on the back of bearish GDT auction and current account data. NZ Current account data showing the gap in trade narrowed to NZD3.19 billion in the Q4 2014 from NZD5.01 in the Q3, coming in largely on par with forecasts. However, the annual deficit grew to NZD7.8 billion, or 3.3% of GDP, from 2.6% in Q3.
Moreover, a minor pull back seen in the US dollar across the board also weighed on NZD/USD. NZD/USD is likely to remain weak ahead of FOMC statement later in the day which may provide further dollar moves.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7326 (5-DMA) levels and above which it could extend gains to 0.7462 (March 10 High) levels. To the downside immediate support might be located at 0.7269 levels below that at 0.7230 levels
NZD/USD turns lower, FOMC in focus
Currently, the NZD/USD pair trades lower near session lows at 0.7294, having previously posted day’s high at 0.7319. NZD/USD gave back gains and edged lower as the kiwi remains pressured on the back of bearish GDT auction and current account data. NZ Current account data showing the gap in trade narrowed to NZD3.19 billion in the Q4 2014 from NZD5.01 in the Q3, coming in largely on par with forecasts. However, the annual deficit grew to NZD7.8 billion, or 3.3% of GDP, from 2.6% in Q3.
Moreover, a minor pull back seen in the US dollar across the board also weighed on NZD/USD. NZD/USD is likely to remain weak ahead of FOMC statement later in the day which may provide further dollar moves.
NZD/USD Levels to consider
To the upside, the next resistance is located at 0.7326 (5-DMA) levels and above which it could extend gains to 0.7462 (March 10 High) levels. To the downside immediate support might be located at 0.7269 levels below that at 0.7230 levels