The NZDJPY pair was lower today as news broke that a ship had run into trouble leading to the loss of 6,000 live cattle and 42 crew members. The ship was on its way from New Zealand to China before it had run into trouble. The news led to The Ministry for Primary Industries (MPI) halting live cattle exports from New Zealand.
The live cattle export industry is worth $300 million per year to the country, which is not massive for a country with a $20 billion GDP, however, agricultural exports account for 25% of this figure ($5bn). The ban on cattle exports will at least cause some concern that it will become permanent and could lead to further restrictions on exports for the country’s farmers.
Rescuers were still searching for the Gulf Livestock 1 ship and its crew, which included two Kiwis. The ship is said to have gotten into distress in rough seas, created by a typhoon in the region. According to Vessel Finder, the ship was built in 2002 and sailed under the flag of Panama. The ship and its crew left the New Zealand port of Napier on August 13 and was expected to arrive in Jintang, China today.
Next week will see Japanese GDP released, with the confirmation of Shinzo Abe’s successor the following week. This week saw some other negative news for the Kiwi with business confidence and new housing permits coming in worse than analyst expectations. and the NZDJPY will now look for a direction at the current resistance level.
NZDJPY Technical Outlook
The NZDJPY pair was trading at a key resistance level, which saw price rejected in June and July of this year. The price is slightly lower today at -0.15%, which is not a big selling day, but traders should watch this level for a good risk/reward option. First support in the pair is around the 69.00 level (+270 pips) and if the market broke through there, the next level is at 67.00 (another +200 pips). The risk for the trade would be above a bearish bar from the 72.00 price.