NZD/USD: retains 0.69 handle within minor recovery

Currently, NZD/USD is trading at 0.6917, down 0.00% on the day, having posted a daily high at 0.6923 and low at 0.6913.

NZD/USD retains the handle, despite pressures in the greenback and pro Trump markets. The recent FOMC set the tone and the kiwi was one of the worst performers post FOMC below the neckline as a bearish formation. Data wise we have been very quiet, but New Zealand came out with its trade balance for November - this showed a deficit of 705mln vrs an expected -500m vrs previous at -846m.

US Dollar Index off highs, still headed toward highest close in 14 years

NZD/USD 1-3 month:

Analysts at Westpac offered the bird in a longer term outlook, "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed's assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar's trend. "

NZD/USD levels

With spot trading at 0.6917, we can see next resistance ahead at 0.6917 (Monthly Low), 0.6917 (Weekly Low), 0.6917 (Daily Open), 0.6918 (Hourly 20 EMA) and 0.6923 (Daily High). Support below can be found at 0.6913 (Daily Low), 0.6909 (Daily Classic S1), 0.6888 (Daily Classic S2), 0.6883 (Yesterday's Low) and 0.6847 (Daily Classic S3).