NZD/USD consolidates the downside post-better NZ trade

• Bulls looking to find some reprieve from New Zealand trade surplus beat.
• But further downside still in play heading into US-China trade talks and FOMC verdict.

The NZD/USD pair stalled its downslide and managed to regain minor bids after the sellers took a breather following the release of upbeat New Zealand’s trade figures.
New Zealand trade balance for December arrived at +264m vs. 150m surplus expected while the exports also bettered estimates.

However, the bulls are seen struggling hard to attempt a recovery as New Zealand trade report showed the annual trade deficit stood at $5.9 billion for the December 2018 year, the highest deficit in eleven years.

Moreover, the risk-off action seen on the US equity markets amid looming US-China trade talks, and Fed rate pause risks will continue to undermine the sentiment around the higher-yielding Kiwi.

Meanwhile, broad-based US dollar weakness amid expectations of a dovish FOMC statement somewhat helps keep the downside limited in the major. The USD index meanders near nine-day lows of 95.64.

With the NZ trade data out of the way, markets remain focussed on the US CB consumer confidence and the FOMC decision for fresh trading impetus. Meanwhile, the US-China trade-related developments will continue to have a major bearing on the pair.

NZD/USD Technical Levels