FxWirePro: NZD/USD retains bearish bias, upbeat New Zealand trade surplus data fails to impress Kiwi bulls
NZD/USD chart - Trading View
NZD/USD extends previous session's slump, trades 0.25% lower on the day at 0.6529 at around 05:30 GMT.
The pair's bounce post RBNZ rate decision on Wednesday was short-lived as broad-based U.S. dollar strength dragged the pair lower.
The Reserve Bank of New Zealand (RBNZ) on Wednesday left its policy rate unchanged at 0.25% and kept its quantitative easing program steady at NZD100 billion, as expected.
However, the central bank in the statement that followed noted that it is prepared to lower the policy rate to provide additional stimulus if required.
Comments from the central bank weighed on the kiwi and triggered a NZD selloff. Today's upbeat New Zealand trade surplus data fails to provide any relief.
According to data released by Statistics New Zealand, August saw the largest annual trade surplus since 2014.
Details of the report showed imports fell by more than $1 billion in August 2020. While imports declined by 16% in annualized terms, exports increased by 8.6%.
Technical analysis shows bearish bias. Upside failed at 200W MA which offers stiff resistance at 0.6779.
Indicators on the weekly and daily charts have turned bearish and we see scope for further weakness.
110-EMA is immediate support at 0.6514. Breach below could see dip till 200-DMA at 0.6391. Retrace above 20-DMA will see change in near-term bias.