NZD/USD Lower following NZ trade deficit

New Zealand's trade deficit narrowed to $871m in October. Excluding the import of a large aircraft, the result was close to our forecast of a $600m deficit, much larger that expected. Following the unsympathetic figures, NZD/USD parked at lower side of last session’s range. On the four hour time frame the price is trapped between the 100-day and 200-day SMAs with current market price 0.6873. Sell offs during the early Asia session are pushing the pair towards south area and as seen on the same chart RSI and stochastic had retreated from the overbought areas and are displaying strong bearish momentum. The 100-day SMA is providing the first resistance level at 0.6885-0.6890 and in case of breaking it to above, the pair will resume its upward potential, that has started from the beginning if the week. But currently the pair is vulnerable around 0.6870 and additional bearish pressure would drag it lower towards 0.6820 – 0.6800. In the last trading day for the week US PMI figures later on today would spur greenback’s influence and would set more clear direction for NZD/USD.