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NZD/USD hits the wall at 0.66 after trade data release

July 24, 2020 by Mario Soto

After enjoying a 5 day rally, the pair was walking down the streets of Auckland with its chest out and feeling quite thrilled with itself after reaching a high of 0.6640 in Friday’s Asia session. However NZ’s June trade numbers brought in mixed emotions. Tradde Balance recovered from $-1.2B to $-1.2B. But then it’s monthly forecast was down from $450M to $426M.  Import/export figures where not too great either with imports rising from $4.11B to $4.64B and exports falling to $5.07B from previously recorded figures of $5.48B.

What the Kiwi traders will be looking out for is data out of it’s cousins across the pond in Australia and their confidants in North America. US-China relations will remain at the forefront of traders decision making and sentiment right now is not injecting any confidence that things will be cooling down anytime soon. Craig Allen, president of the U.S.-China Business Council, said he was alarmed by the increasing invective from two superpowers that together represent 40 percent of global economic output. “If we are yelling at each other and slamming doors, then the world is a very unstable place, and businesses are not able to plan,” he said. So with all this tension and a global pandemic thrown into the mix, the market will be waiting in anticipation for signs of which direction to take.

Levels to consider

  • A break below 0.6600 possible target  of 0.6585
  • Break above 0.6700 look for a move to 0.6745

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