NZDUSD trading volumes began to decline

NZDUSD trading volumes began to decline. The New Zealand currency is correcting against the US dollar on the background of positive macroeconomic statistics and is now near 0.6746.

International trade continues to grow. As of November, New Zealand’s imports rose to 6.73B NZ dollars and exports reached 5.86B NZ dollars. The trade balance in November amounted to -864M NZ dollars, and in annual terms, the figure was fixed at -6.040B NZ dollars.

The positive dynamics of the recovery of the national economy can be traced by statistics of Credit Card Spending: in November, the figure was -0.1%, which is significantly better than -5.2% shown a month earlier. Thus, despite the impact of the coronavirus pandemic, the indicators continue to improve with confidence, supporting the exchange rate of the New Zealand currency.

The US dollar remains at its opening levels for the week, just above 96.500 in the USD Index. Trading volumes dropped markedly due to investors leaving for the Christmas holidays. Perhaps the only news that could change the rate of the US currency was a bill to allocate 2T US dollars to support the national economy, but, according to the leader of the majority in the US Senate Chuck Schumer, Democrats will consider this issue only in 2022.

Support and resistance

Quotes of NZD/USD are correcting within the next downward wave of the global downward channel. Technical indicators hold a stable sell signal, but do not exclude corrective growth: the range of the Alligator indicator EMAs fluctuations continues to narrow down and the histogram of the AO oscillator forms local ascending bars being in the sales area.

Support levels: 0.6700, 0.6500.

Resistance levels: 0.6806, 0.7020.

NZDUSD trading volumes began to decline

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