Nzdusd drops 0.09% to 0.59200 despite New Zealand’s improved trade balance

NZDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.09%	-5.5 Pips
Week to-date	0.77%	45 Pips
May	-0.13%	-7.6 Pips

Upcoming key events (London Time)

Thu 03:00 AM NZD Budget Release

What happened lately

New Zealand experienced a notable increase in its exports in April 2025, which rose to $7.84 billion from a revised $7.41 billion in March. This positive development indicates stronger demand for New Zealand’s goods in the international markets. Furthermore, New Zealand’s trade balance has shown significant improvement. The 12-month trade balance in New Zealand dollars enhanced to -4.81$ in April, compared to a previously revised figure of -6.13$ in March. This improvement is attributed to the increase in exports coupled with a reduction in imports. In April 2025, New Zealand’s imports decreased to $6.42 billion from a revised $6.61 billion in March. This decline in imports may reflect reduced domestic consumption or the preference for domestically produced goods.

The positive shift in New Zealand’s trade balance and increase in exports in April 2025 is indicative of a strengthening economy, which should ideally bolster the New Zealand dollar (NZD). However, despite these rosy economic indicators, the NZDUSD exchange rate saw a slight decrease of 0.09% on Tuesday, settling at 0.59200, with the pair remaining in a consolidation phase. This suggests that other factors may be influencing the currency pair’s performance, such as global economic conditions or investor sentiment. It’s essential to note that the upcoming New Zealand budget release, expected on Thursday at 3:00 AM, is highlighted as a high-impact event. The details of this budget could have significant implications for NZDUSD, as they may provide insight into fiscal policy and economic priorities that could sway market expectations. Investors and traders are likely to watch these developments closely, as they may lead to increased volatility and potential shifts in the NZDUSD pair.

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What can we expect from NZDUSD today?

NZDUSD on Tuesday dropped -0.09% to 0.59200. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for NZDUSD looks mixed as the pair is likely to consolidate above 0.58985 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.59320 or trades above daily pivot 0.59152. Break above could target R1 at 0.59368. While to the downside, we are looking at 0.58985 (S1) and daily low of 0.58937 as support levels. NZDUSD need to break on either side to indicate a short-term bias. A close below 0.58937 would indicate selling pressure.

For the week to-date, take note that NZDUSD is mixed as compared to the prior week.

Key levels to watch out:

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