NZDUSD trades 0.09% lower at 0.6567 as the correction from four-month highs continues. The New Zealand’s current account deficit increased from $10.2 billion in the second quarter to $10.3bn in the third quarter, but in ratio terms, it was steady at 3.3% of GDP.
Yesterday the GDT Price Index dropped 5.1% more than expectations of 0.5% as the demand from China drops.
US housing data came in stronger than expectations. The Building Permits came in at 1.482M above forecasts of 1.41M in November. The U.S. Housing Starts Change came down to 3.2% in November from the previous 3.8%. The Building Permits Change dropped to 1.4%.
Read our Best Trading Ideas for 2020.
NZDUSD Bulls in Control Above 0.6530
NZDUSD momentum is still bullish despite the three-day correction. The recent drop in NZDUSD helped the pair to exit the overbought area. Now the RSI 14 index trading at 65.34.
On the downside, first support stands at 0.6553 the daily low. The next target that bears need to reach in order to cancel the bearish momentum is the 200-day moving average at 0.6530. Below that support the next barrier comes at 0.6425 the 50-day moving average.
On the upside, bulls are under pressure the last trading session and now need a close above 0.6572 the daily high. Next resistance for the pair will be met at 0.6634 the high from December 13th.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.