NZD/USD free-falling on widening trade deficit in New Zealand; now at 0.8244 support

FXstreet.com (Barcelona) - The NZD/USD seemed to be in a mild correction lower coming into today’s trade balance data out of New Zealand. That thought has turned into a desperate hope as the data has NZD/USD falling sharply.

NZD/USD traders to focus on US data later Wednesday, but NZD trade balance was bad

NZD/USD traders are dumping longs frantically after the New Zealand trade balance data came out far worse than expected. The gentle drift lower that actually looked quite bullish for confident bulls turned into a cascading action that wiped away much of the confidence the bulls had built up recently.

Later Wednesday, outside of any political developments, the trading in NZD/USD will be influenced by US Durable goods and new home sales data.

Technical outlook for NZD/USD

Technicians say support comes in for NZD/USD at 0.8244 – the 23.6% Fibonacci retracement of the rally that has taken place this month. Below that, the next potential floor is 0.8144. Resistance comes into play at the horizontal lines of 0.8296 and 0.8343.

New Zealand trade balance deficit worsens

New Zealand Trade Balance (MoM) (Aug) came at $-1191M vs $-743M exp and $-774M prior. Exports (Aug) stood at $3.33B vs $3.54B exp and $3.85B last, while Imports (Aug) saw $4.52B vs $4.30B exp and $4.62B prior.
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