- The Kiwi sees a limited bump on Greenback softness, but overall markets remain cautious.
- Late Tuesday will bring NZ Trade Balance figures, and bulls will be hoping for a better showing than forecasts.
The NZD/USD is trading into 0.6790, but struggling to make headway into the 0.6800 major level as Asian session markets wind through Tuesday.
Commodities continue to see price squeezes in risk-prone markets across the globe, keeping bearish pressure on the Kiwi elevated, and bullish moves in the overnight session are largely owing to a softening in the US Dollar, but overall market flows remain constrained with a thin calendar for the week ahead.
Kiwi traders will be keeping their eyes on late Tuesday’s Trade Balance figures for New Zealand, with the trade figures dropping at 22:45 GMT. New Zealand’s m/m Trade Balance for June is expected to contract from $294 million to $200 million, while market median forecasts are expecting a decline in both imports and exports, with the steeper contraction going to June Exports, expected to shift lower from $5.42 billion to $5.06 billion, while June’s Imports are forecast to tick down slightly from $5.12 billion to $4.92 billion.
NZD/USD Levels to watch
As noted by FXStreet’s own Ross Burland, “support is located at 0.6720 and resistance remains located at 0.6860. Bullishly, the price has held the 0.6760 level and is above the 100/21-hourly SMAs – this is where it was previously resisted by the 21-hr SMA when the price then managed to get above the 10-hr SMA and took RSI into overbought conditions. 0.6820 caps and there could be some consolidation down here before the next leg one way or the other. However, on a break of 0.6920, the bulls will be well back in control and could target the June highs. The 200-month moving average resistance at 0.7007 is next key level.”
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