- Volatile within range, but upside appears capped amid negative surprise in New Zealand’s (NZ) trade figures.
- Eyes oil price-action and the US new home sales data for fresh trading opportunities.
NZD/USD is seen fluctuating between gains and losses so fat this Wednesday, as the bears continue to guard the upside, in the wake of disappointing NZ trade balance report.
NZD/USD needs to take-out key resistances near 0.6825
The spot extends its range-play around the 0.68 handle into a fourth day today, as the downside remains capped by the recent broad-based US dollar weakness while the rallies are sold-off into risk-off trades, as the global trade war tensions continue to haunt the markets.
Investors remain on the edge ahead of the meeting between European Union (EU) President Juncker and the US President Trump on the trade issue scheduled later today. Trump tweeted overnight that he urges both the economies to encourage free trade.
Meanwhile, a negative surprise delivered by the NZ trade report also left the bulls unimpressed while the prospects of a Reserve Bank of New Zealand (RBNZ) remains a distant dream. NZ trade balance arrived at NZD 113m deficit in June vs. 200m surplus expected.
However, the pair manages to find some support from higher oil prices, as the focus now shifts towards the US new home sales data due later today ahead of the US Q2 GDP figures slated for release this Friday.
NZD/USD Technical Levels
Resistances: 0.6850 (psychological levels), 0.6876 (50-DMA), 0.6900 (round number).
Supports: 0.6788 (10-DMA), 0.6720 (Jul 20 low) and 0.6688 (multi-month lows).
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