NZD/USD drops further to 50-DMA, NZ trade miss weighs

The Kiwi is seen extending its drop below 0.72 handle, as the bears retain control amid a big miss in the January trade balance deficit of 285m. Also, a dip in the NZ business confidence numbers, as reported by ANZ, added to bearish momentum seen behind the NZD.

Currently, the NZD/USD pair drops -0.13% to 0.7184, having posted session lows at 0.7177 last hours. The major is on the back foot amid recent streak of New Zealand’s bearish fundamentals and broad based USD buying, which was triggered by Trump’s comments delivered on infrastructure spending in the last NY session.

Moreover, ongoing bullish momentum in the AUD/NZD cross, in wake of better-than expected releases of the Australian economic data,  further weighs down on the Kiwi.

In the day ahead, the spot could get affected by the USD dynamics, as investors gear up for the US prelim GDP report and Trump’s speeches.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7200 (zero figure), above which it could extend gains to 0.7220 (daily R2) and from there to 0.7250 (psychological levels). To the downside immediate support might be located at 0.7174/66 (50 & 200-DMA) and from there to at 0.7123 (100-DMA), below which 0.7100 (round figure) would be tested.