NZD/USD (current price: 0.7095)
The New Zealand Dollar had a very bearish week once again, as it remains in a correction since exiting a long-term uptrend, as we expected. The negative Chinese Trade Balance data dominated the market in the second half of the week, with the most important export target for New Zealand still struggling with slow growth and high debt levels. The pair violated the strong support near 0.72, and Friday’s bearish reversal might point to the continuation of the short-term trend.
Our assessment: The pair exited a bullish trend in late September and is now close to a re-test of the rising 200-day MA, which is currently found at 0.69.
