THE TAKEAWAY:NZD Trade Balance (Dec) > $+486m versus $-105m expected, from $-700m > Technical Picture Still Grey For Kiwi > NZDUSD Neutral
The Kiwi continues its correction off 0.8275 lows, now extending as high as 0.8350 resistance, following improved trade balance data in New Zealand. New Zealand reported a $486 million trade surplus in December compared to Novembers $700 million. Markets expected a $105 million deficit. Exports were up to $407 billion versus $3.98 billion, while imports were down at $3.54 billion versus $4.07 billion.
The technical picture is still grey for the interest of longs Kiwi. Only a recovery and subsequent hold above the 0.8350 may shift the focus to round 0.84.
NZDUSD 1-minute Chart: January 28, 2013
Chart from FXCM Trading Station, created by Courtney Edwards
The NZD/USD held steady after New Zealand’s trade balance rose more than expected. There was a 20 pip rise in the Kiwi as New Zealand reported the surplus.
--- Written by Courtney Edwards, DailyFX Research