NZD/USD holds recent gains to 0.6630 ahead of New Zealand trade balance
- New Zealand markets re-open after ANZAC day holiday.
- March month trade balance data remain in immediate focus with the US GDP likely grabbing the spotlight then after.
NZD/USD stretches its recovery to 0.6630 at the start of the Asian session on Friday. The Kiwi pair bounced off 0.6580 on Thursday despite having New Zealand markets closed. March month trade data will be an the immediate focus of the global markets.
Even if New Zealand markets were closed on ANZAC day and the US durable goods orders confirmed the strength of the world’s largest economy, the NZD/USD pair gained the most G10 currencies along with the USD/JPY as investors preferred cashing out of the greenback before today’s US GDP.
It can also be said that the increase in weekly initial jobless claims form the US gained better attention than the durable goods orders.
Recently Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr appeared for an interview before New Zealand’s National Business Review. He said that there still prevails a room to cut rates if required while also mentioning that the economy is in a good spot now.
Looking forward, New Zealand trade balance is expected to register an increase in imports and exports together with a decline in the yearly trade deficit. The trade balance figures could flash $-6.339 billion mark against $-6.620 billion on YoY while increasing to $131 million from $12 million on a monthly basis. Further, imports may grow to $5.15 billion versus $4.80 billion earlier while exports could rise to $5.30 billion compared to $4.82 billion previous.
Latest in the day, a preliminary reading of the US first quarter (Q1) 2019 gross domestic product (GDP) will be in the eye of the traders. Forecasts suggest that the US GDP annualized may soften to 2.1% from 2.2%.
Technical Analysis
Unless overcoming 0.6650/55 resistance, chances of the quote’s rise to 0.6700 and 200-day simple moving average (SMA) level of 0.6730 can’t be favored.
On the contrary, a downside break of 0.6580 can recall 0.6510 and 0.6470 rest-points.