NZD/USD Price Analysis: Remains confined below 0.6220 despite upbeat China’s international trade data
- NZD/USD has remained lackluster despite the release of solid China Trade Balance data.
- China’s annual Imports have contracted by 1.4% while Exports have expanded significantly by 14.8%.
- The Kiwi asset has been in a negative trajectory after a breakdown of the Rising Channel.
The NZD/USD pair is displaying back-and-forth moves in a narrow range of 0.6210-0.6220 in the Asian session. The Kiwi asset has turned sideways as the US Dollar Index has shown some recovery after an intense sell-off. Also, upbeat China’s international trade data (March) has failed to infuse blood into the New Zealand Dollar.
China’s Trade Balance data (in US Dollars) has landed at $88.19B, significantly higher than the consensus of $39.2B but lower than the former release of $116.8 B. Annual Imports have contracted by 1.4% while the street was expecting a contraction of 5%. However, Exports have expanded significantly by 14.8% against a contraction of 7.0% as expected.
It is worth noting that New Zealand is one of the leading trading partners of China and a lower-than-expected contraction in Chinese Imports would be supportive of the New Zealand Dollar.
Meanwhile, the USD Index is making efforts for keeping its feet steady above 101.50.
The New Zealand Dollar has been in a negative trajectory after a breakdown of the Rising Channel chart pattern formed on a four-hour scale. Also, the 20-and 50-period Exponential Moving Averages (EMAs) at 0.6217 and 0.6236 respectively are acting as barricades for the New Zealand Dollar. Potential horizontal support is plotted from March 08 low at 0.6084.
The Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bearish range of 20.00-40.00, which indicates a loss in the downside momentum..
A downside will be witnessed if the Kiwi asset surrenders April 11 low near 0.6170, which will drag the major to March 15 low at 0.6139 followed by March 08 low at 0.6084.
Alternatively, a decisive upside move above February 07 high at 0.6363 will expose the Kiwi asset to the round-level resistance at 0.6400 and December 05 high at 0.6443.
NZD/USD four-hour chart
