This morning’s trade data
(New Zealand (NZD) Imports (AUG): $4.52B, Expected: $4.30B, Previous: $4.62B
New Zealand (NZD) Trade Balance (AUG) (m/m): $-1,191M, Expected: $-743M, Previous: $-774M
New Zealand (NZD) Trade Balance (AUG) (y/y): $-2.06B, Expected: $-1.62B, Previous: $-1.69B
and a long-NZD market are conspiring to squeeze some positions especially on the crosses.
- NZD/JPY has started retracing and we could see prices back towards a 38.2% retracement, and previous daily highs, near 80.40 (see chart). I favour buying a bounce off this level.
- AUD/NZD looks like it might try to post a double-bottom at 1.12 so bears should be cautious.