New Zealand dollar managed to distance from session lows against its US peer during Wednesdays early trade, following the release of disappointing data, regarding trade balance in China, while market players began focusing on the FED minutes, expected later in the day.
NZD/USD pair registered a session low at 0.7823 at 2:40 GMT, after which pulled back to higher levels, consolidating at 0.7860. Support was expected at July 9th low, 0.7763, while resistance was likely to be encountered at June 12th high, 0.8024.
A report said earlier that Chinese export declined by 3.1% in June on annual basis, confounding experts projections of a 3.7% increase, and bolstering concerns over diminishing demand for raw materials globally. Chinese annual import figures were also weaker, implying a slow down in domestic demand as well. This led to a decline in Australian dollar and influenced the New Zealand dollar also, as China is new Zealands second largest export partner.
Meanwhile, demand for the US dollar continued to be strong due to ongoing expectations of US Federal Reserve reducing scale of its Quantitative Easing later in the year.
In addition, kiwi dollar was lower against its Australian peer, as AUD/NZD cross advanced by 0.11% to 1.1704 at 7:52 GMT.
The Federal Reserve Bank was expected to release the minutes of its policy meeting in June later in the trading day.
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