NZDUSD trades 0.11% higher at 0.6354 after tested earlier in Asian trading session the 50-day moving average helped by the optimism around trade talks between the two biggest economies and the extension in Brexit. New Zealand trade gap narrowed in September versus the same month of the previous year, amid exports increase of 5.1% to NZD 4469 million and imports declined 2.1% to NZD 5710 million.
NZDUSD felt pressure after RBA cut rates and traders increase bets that RBNZ will follow. RBNZ, in its last monetary policy committee, left interest rates unchanged at 1% as widely expected by markets. The central bank noted that the risks are to the downside amid trade tensions, geopolitical turbulence and low business confidence.
NZDUSD found support today at the 50-day moving average at 0.6340 after two consecutive days of losses. On the upside, first resistance stands 0.6357 today’s high, the next target is the 0.6424 the high from October 24th. On the downside, immediate support stands at 0.6342 daily low and 100-day moving average and then at 0.6282 the low from October 17th, a convincing break below might force the pair down to 0.6169 the lows from June 2009. NZDUSD short term outlook is neutral now and only a break below the 50-day moving average might initiate another leg lower.Download our latest quarterly market outlookfor our longer-term trade ideas.
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