NZD/USD a tad lower on the trade balance data
NZD/USD probed 0.7345 in London before retracing to 0.7310 ahead of the NZ trade data today that arrived with a balance of -566m vs the prior 596m surplus that was revised from a 640m surplus.
Exports 4.31bn were a miss vs the expected 4.58bn. The prior was revised to 5.49bn from 5.55bn.
Imports were higher than the expected and arrived at 4.87bn vs 4.60bn. The prior was revised to 4.89bn from 4.91bn.
Meanwhile, and as analysts at ANZ point out, the USD continues to be in the driver’s seat determining overall market direction. "That said, we continue to hold a bias that the NZD is on borrowed time up at these levels, and any moves up towards 0.7350 will be sold into," the analysts added.
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The wide support is 0.7180 with wide resistance at 0.7420. The key topside resistance line is made up from 0.7436 (Jan 23rd high) 0.7419 (30th Jan high), and 0.7379 (13th Feb high). The next key resistance levels, should the 0.7310 support level hold, will be the 0.7435/40 triple top level ahead of 0.7557, 21st July 2017 high. 0.7310 guards 0.7280 and 0.7180.