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The New Zealand dollar continues  gaining against the US dollar  and reached 0.8793, the highest level since August 2011, nearly 3 years. By doing so, it broke above the high of 0.8780 recorded in May.

The round number of 0.88 is the next immediate support line, yet the more important level is 0.8842, which is the multi-year high recorded in August 2011.

There were two main drivers to the move: the weakness of the US dollar and the better than expected trade balance report.

New Zealand reported yet another month of trade  surplus: 285 million dollars in May instead of 250 million expected. The previous balance was +498 million. In addition, both exports and imports came out better than expected, with the former hitting 4.6 billion and the latter at 4.32 billion.

The second reason is the weakness of the US dollar: this was seen also in the Canadian dollar, which advanced strongly against the USD and to a lesser  extent in JPY and GBP.

This is how the weekly chart looks like:

NZDUSD June 27 2014 technical forex analysis highest since 2011 New Zealand dollar

For more, see the NZDUSD prediction.