Forex Market: NZD/USD daily outlook

During yesterday’s trading session NZD/USD traded within the range of 0.8533-0.8589 and closed at 0.8572.

At 9:06 GMT today NZD/USD was gaining 0.37% for the day to trade at 0.8606. The pair touched a daily high at 0.8610 at 8:47 GMT.

Fundamental view

Durable goods orders in the United States probably increased 1.0% in February, according to preliminary estimates, as a month ago orders declined 1.0%. Durable goods category includes new and second hand goods, which are usually used for a period of over three years. It includes motor vehicles, housing furniture, sports goods, construction materials, industrial equipment, metals and minerals and others.

This indicator accounts for a major part of nations factory orders. A larger rate of increase than projected would certainly provide a boost to US dollars demand.

Durable goods orders, which exclude the sector of transportation, probably climbed 0.1% last month, following a 1.1% increase in January.

Durable goods orders, which exclude expenditures in the sector of defense, probably rose 2.5% in February, after a 1.8% drop in January. The official results are due out at 12:30 GMT.

Meanwhile, the surplus on New Zealands trade balance probably expanded to 0.600 billion NZD during February from 0.306 billion NZD in the prior month. A larger than anticipated trade surplus would support the kiwi dollar. The official figure is expected to be released at 21:45 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case NZD/USD manages to breach the first resistance level at 0.8596, it will probably continue up to test 0.8621. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8652.

If NZD/USD manages to breach the first key support at 0.8540, it will probably continue to slide and test 0.8509. With this second key support broken, the movement to the downside will probably continue to 0.8484.