Global macro overview for 28/06/2016:
The Statistics New Zealand had released merchandise Trade Balance data regarding imports and exports figures for the previous month. The data showed that economy posted a trade surplus of 358 million New Zealand dollars in the month of May. The data has beaten the analysts forecasts which called for a surplus of $182 million New Zealand dollars. This is the second in a row trade surplus, as the April data were also better than expected and showed 292 million New Zealand dollars surplus. On a yearly basis, the New Zealand exports jumped to 4.57 billion, beating forecasts of 4.331 billion. The imports were better than expected as well, rising at annual rate to 4.22 billion for the month. In conclusion, this latest surge continues a series of month-to-month increase in a broad range of mainly consumer goods, indicating there is no pressures on country's currency.
Let's now take a look at the NZD/USD technical picture in the daily time frame. The market is trading above the 100 and 200 DMA and recently has broken above the 61%Fibo level of the previous swing. This indicates that the bull camp is in control over this market and higher prices should be seen soon. The next resistance is seen at the level of 0.7300 and the next support is seen at the level of 0.7054 and 0.6961.
