Nzdusd rises 0.92% on positive New Zealand trade data

NZDUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.92%	54.4 Pips
Week to-date	1.01%	60.2 Pips
April	5.64%	320.2 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

New Zealand’s economic data for March shows a positive trend in trade activities. Exports increased significantly to $7.59 billion, an uptick from the revised $6.74 billion observed in February. The rise in exports is likely driven by increased demand for New Zealand’s goods and services internationally. The trade balance, although still negative, improved markedly to -6.13 billion NZD from February’s revised -6.51 billion NZD. This improvement points to a narrowing trade deficit, suggesting that exports are expanding at a faster pace than imports. However, imports have also seen an increase, rising to $6.62 billion in March from $6.22 billion in the previous month. This could reflect stronger domestic demand or rising costs of imported goods.

The recent movement in the NZDUSD exchange rate aligns with these positive economic indicators for New Zealand. On Monday, the NZDUSD rose by 0.92% to 0.59922. This increase in value can be attributed to the stronger trade data, which likely improved investor confidence in the New Zealand dollar. Improved trade balance figures typically support a stronger currency as they imply a healthier economic outlook. With no major upcoming events likely to influence the currency pair, the improvements in trade metrics might provide continued support for the NZD, potentially leading to a stable or appreciating exchange rate against the US dollar in the near-term. However, ongoing domestic and international economic conditions will also play a crucial role in determining future movements of the NZDUSD pair.

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What can we expect from NZDUSD today?

NZDUSD on Monday rose 0.92% to 0.59922. Price is above 9-Day EMA while Stochastic is falling in overbought zone.

Updated daily direction for NZDUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.60313 with break above could target R2 at 0.60703 or figure level area. While towards the downside, we are looking at daily low of 0.59286 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.60190 may suggest continuation after recent positive movement.

For the week to-date, take note that NZDUSD is bullish as the pair continued to trade higher and is up by 1.01% over the past few days.

Key levels to watch out:

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