NZD/USD extends NZ trade-led bounce beyond 0.7250
- Lifted by risk-recovery, better NZ trade data and RBNZ news.
- Focus shifts to Fedspeaks and ANZ business confidence for fresh impetus.
The NZD bulls were rescued by upbeat NZ trade balance data, which reported an expected surplus figure of NZD 217 million in February. Subsequently, fresh bids emerged near 0.7230 region and prompted a tepid-recovery in a bid to regain the midpoint of the 0.72 handle.
New Zealand Trade Balance: upside swing to February's data
Over the last hours, the recovery in the spot received extra legs after the risk sentiment improved on the WSJ reports that “China and the US are negotiating to improve US access to Chinese markets after a week filled with harsh words from both sides over Washington’s threat to use tariffs to address trade imbalances".
Meanwhile, broad-based US dollar weakness combined with the RBNZ efforts to achieve its mandate of 1-3 percent inflation goal. In the day ahead, the macro calendar remains data-dry and hence, the speeches by the FOMC members Quarles, Dudley and Mester will be closely heard for fresh policy insights, as the main focus remains on New Zealand’s ANZ business confidence and US CB consumer confidence data for the next trading impetus.
NZD/USD levels to watch
To the topside, resistances are lined up at 0.7289 (50-DMA), 0.7356 (Mar 14 top) and 0.7385 (Feb 21 high). On the flipside, the spot finds the immediate support at 0.7235/33 (5 & 10-DMA), below which 0.7182 (100-DMA) could be tested, opening floors towards 0.7152 (200-DMA).