NZD continues dropping against USD. Pressure on the instrument is exerted by the growth of USD, which continues to strengthen due to the positive macroeconomic statistics.
Richmond Fed Manufacturing Index turned out to be significantly better than the forecast and amounted to 20 points compared to 16 points a month earlier. Published data on new home sales also demonstrated growth to 0.689M.
On the other hand, the trade war, which the US began with China and the EU, could significantly weaken USD, as traders prefer to invest in more stable assets. At the same time, many experts predict that countries will be able to find a compromise, since the conflict is not beneficial to any of the parties.
Support for NZD may be provided by oil quotations, which are strengthened due to the possible sanctions from the US, which apply to Iranian products and companies that purchase petroleum from Iran. Published today, the data on the trade balance of New Zealand showed growth of up to 294M, which is also a positive signal and could cause the strengthening of the currency.
Support and resistance
Stochastic is at the level of 10 points and indicates the possible correction.
Resistance levels: 0.6870, 0.6940.
Support levels: 0.6815, 0.6800.
Long positions may be opened from the current level with take-profit at 0.6940 and stop-loss at 0.6770.
New Zealand Dollar vs US Dollar
|Support levels||0.6800, 0.6815, 0.6870, 0.6940|
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