NZD/USD making fresh lows below 0.7200 with big miss in trade balance

Currently, NZD/USD is trading at 0.7188, down -0.07% on the day, having posted a daily high at 0.7198 and low at 0.7187.

NZD/USD bears are lurking on the back a resurgence n the greenback in the US session and the bird is losing sight of the 0.72 handle as a result. The US session flipped and we witnessed higher stocks yet again, yields recovering and the US dollar ending flat on the day, pretty much recovering one hundred percent of losses across the board wit the DXY back above the 101 handle. With the NZ data, a big miss in the January trade balance deficit of 285m, the bird is printing fresh lows ahead of a busy session ahead with the forthcoming events to surely provide volatility. 

Forex today: Dollar strikes back, 10y recover from multi-week lows

For the meantime, analysts at Westpac see the bird stuck around these levels in neutral until Trump.

Trump providing clues ahead of Congress - ANZ

NZD/USD 1-3 month:  

The same analysts at Westpac explained that the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD down to 0.7000 or lower. "Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend. (21 Feb)."

NZD/USD levels

NZD/USD is pressuring the 21st Feb highs of 0.7174 ahead of the recent 0.7128 low and double bounce area below the 200 hourly smoothed sma. The double top region below the half way mark on the 0.70 handle guards a break to 0.6980 late Dec highs. A double top at 0.7250 guards the Feb and YTD highs of 0.7374.