Global macro overview for 15/03/2017:
The data from New Zealand released overnight showed that New Zealand current account deficit shrinks more than expected in the fourth quarter. According to Statistic New Zealand, deficit stood at NZD $2.34 billion in the fourth quarter, down from a deficit of $5.03 billion the previous quarter. Analysts in a median estimate expected the current account deficit to shrink to $2.43 billion. In annual terms, the deficit stood at $7.1 billion, or 2.7% of gross domestic product (GDP). In conclusion, the New Zealand's trade picture has deteriorated over the past half a year, as weak international demand weighed on exports.
Let's now take a look at the NZD/USD technical picture in the daily time frame. The market has broken below the golden trend line and now is trading close to the swing low at the level of 0.6860 in oversold market conditions. Currently, the price is moving in a trading range between the levels of 0.6888 - 0.6951 and global investors are waiting for the FED interest rate decision today. If FED does not hike, then the NZD/USD will spike higher towards the level of 0.7000 and above in order to test the golden trend line from below.
