NZD/USD: recovering on back of trade balance

NZD/USD has rallied on to the 0.67 handle and has added 20 pips in early Asia with the trade balance being released for Feb New Zealand February trade balance: +339m vs expectations of just +90m.

The best data in the background of the headline where the exports, 4.25bn vs expected 4.01bnbn while prior was 3.90bn. Imports were 3.91bn expected vs 3.90bn while previous arrived 3.89bn. This data potentially helps the RBNZ to remain its path on monetary policy without needing to cut rates again so soon. Meanwhile, the calendar ahead is now quiet until the US data comes through from up coming sessions ahead, with particular attention on US GDP and durable goods ahead of the Bank holiday weekend. Then we move into the first week for April and we look forward to Chinese manufacturing data and nonfarm payrolls to make a big impact.

NZD/USD levels

The price is through the 1hr 20 sma at 0.6712 and targets the 200 sma at 0.6728 on the same time frame. The major support is located at the 200 sma on the 4hr at 0.6682 while a break through the converging 100 and 50 sma o the same time frame opens up 0.6780 and R2 at 0.6782.