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  • NZD/USD is reporting marginal gains in Asia  but is holding above the upward sloping (bullish) 20-day moving average (MA) of 0.6752.
  • New Zealand reported a bigger-than-expected trade deficit earlier today.
  • The 20-day MA could be convincingly breached if the Fed officials, scheduled to speak this week, sound hawkish.

The NZD/USD pair is currently trading at 0.6761, having clocked a high of 0.6777 earlier today.

The marginal losses are likely associated with the disappointment arising out of the bigger-than-expected New Zealand’s October trade deficit of NZD 1,295 million.

The imports rose NZD 6.15 billion, beating the estimated figure of NZD 5.74 billion. The pick up in imports is usually considered a sign of rising domestic demand. In New Zealand’s case, however, the rise in imports is largely due to record oil import bill.

Further, exports of NZD 4.86 billion, narrowly missed the estimate of NZD 4.88 billion. As a result, the kiwi dollar is on the defensive in Asia.

The downside, however, is being capped near the 20-day MA of 0.6752, possibly due to the overnight gains in the US stocks.

The bullish MA support would be convincingly breached if the Fed’s Powell and Co. put more emphasis on the need for above-neutral interest rate policy. It is worth noting that the markets are way behind the curve. Therefore, the American dollar could rise sharply on hawkish Fed-speak.

NZD/USD Technical Levels

NZD/USD

Overview:
       Today Last Price:  0.6764
       Today Daily change:  -21  pips
       Today Daily change %:  -0.310%
       Today Daily Open:  0.6785
Trends:
       Previous Daily SMA20:  0.674
       Previous Daily SMA50:  0.6632
       Previous Daily SMA100:  0.6659
       Previous Daily SMA200:  0.6877
Levels:
       Previous Daily High:  0.6818
       Previous Daily Low:  0.6756
       Previous Weekly High:  0.6876
       Previous Weekly Low:  0.6767
       Previous Monthly High:  0.663
       Previous Monthly Low:  0.6424
       Previous Daily Fibonacci 38.2%:  0.6779
       Previous Daily Fibonacci 61.8%:  0.6794
       Previous Daily Pivot Point S1:  0.6755
       Previous Daily Pivot Point S2:  0.6724
       Previous Daily Pivot Point S3:  0.6693
       Previous Daily Pivot Point R1:  0.6816
       Previous Daily Pivot Point R2:  0.6848
       Previous Daily Pivot Point R3:  0.6878