- Data released earlier today showed that China's trade data disappointed in September.
- China's trade balance for September, in yuan terms, came in at 278.4bn CNY vs 300bn expected and 346bn last.
- Exports came much worse than expected at -5.6% y/y vs 2.5% expected and 5.9% last, while imports were +2.2% y/y vs +5.5% expected and 10.8% last.
- NZD/USD in the red, continues downside after brief pause on Wednesday.
- The pair is holding major trendline support at 0.7030, break below could drag the pair lower.
- 200-DMA at 0.6940 in sight. Bearish invalidation only above 100-DMA at 0.7161.
- Divergent monetary policy outlooks between the Fed and RBNZ continues to exert downward pressure on NZD/USD.
- Focus now shifts towards the US unemployment claims and EIA oil inventory report for further momentum in the major.
- Major support levels - 0.7030 (trendline), 0.70, 0.6970 (June 24 low), 0.6940 (200-DMA)
- Major resistance levels - 0.7094 (5-DMA, double top June 16 & Oct 12), 0.7148 (June 9 high), 0.7161 (100-DMA)
Recommendation: Good to sell break below 0.7030, SL: 0.71, TP: 0.70/ 0.6970/ 0.6940
