- Antipodeans dented on dismal China trade data released earlier today.
- China October trade surplus came-in at CNY 254.5 billion vs. CNY 275.0 billion. Exports stood at 6.1% y/y vs 7.0% expected, while imports came-in at +15.9% y/y vs 17.5% expected.
- NZD/JPY trades in narrow range, capped below 20-DMA at 79.00, upside only on break above.
- Technical indicators for the pair have turned bullish. Stochs are biased higher.
- Further we evidence a bullish divergence on RSI and Stochs which adds to bullish bias.
- Break above 20-DMA raises scope for test of 200-DMA at 79.75.
- On the flipside, rejection at 20-DMA will see resumption of downside. Test of 78.30 levels then likely.
- Focus now on RBNZ, we expect the central bank to still be somewhat cautious.
Support levels - 78.30 (38.2% Fib retrace of 83.91 to 69.23 rally), 78, 77.35 (Oct 31 low)
Resistance levels - 78.76 (5-DMA), 79 (20-DMA), 79.48 (Oct 23 high), 79.75 (200-DMA)
Recommendation: Watch out for break above 20-DMA to go long.
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