Friday’s trade saw NZD/USD within the range of 0.7736-0.7796. The pair closed at 0.7741, losing 0.20% on a daily basis.
At 9:05 GMT today NZD/USD was up 0.18% for the day to trade at 0.7752. The pair touched a daily high at 0.7754.
Fundamentals
New Zealand
Trade Balance
The deficit on New Zealands balance of trade probably narrowed to NZD 0.500 billion in November from NZD 0.908 billion in the preceding month. In October goods exports were valued at NZD 4 billion, or a 5.1% drop compared with October 2013. Milk powder, butter, and cheese, the nations main export group, were down 24% to NZD 1.1 billion. In case the deficit narrowed more than projected last month, the local dollar would receive support. The official trade data is expected at 21:45 GMT.
United States
Existing Home Sales
The index of existing home sales in the United States probably gained 0.8% to a level of 5.25 million in November compared to a month ago. In October compared to September existing home sales rose 1.5% to 5.26 million, or the highest level since September 2013. The sample of data encompasses condos, co-ops and single-family houses.
Statistical data on existing home sales is often used along with statistical figures regarding the new home sales and pending home sales, with the major objective being to draw a conclusion how nation’s housing sector is performing, regardless of interest rates. The most active house-purchasing period in the United States is usually between the months of March through June. Therefore, in case statistical data revealed a sudden drop in the number of homes sold rather than an improvement during this period, this would be considered as a signal of weakness in the country’s housing market.
The report on existing home sales usually does not cause a real direct impact on US economy. Actually, this effect appears to be minimal, due to the fact that nothing is produced with the mere sale of an existing home. In terms of economic activity, the sale of an existing house may be related only to interior design and purchases of new furniture.
The reason markets pay a certain attention to existing home sales report is that it reveals much about the general course of nation’s economy. A major part of the population considers a house as a sign of wealth and, unlike the money wealth, which is concentrated in certain regions of the country and held by the wealthiest representatives of the population, ”housing wealth” is evenly distributed across the country.
In case the index increased more than anticipated, this would have a bullish effect on the US dollar. The National Association of Realtors (NAR) is to release the official figure at 15:00 GMT on Monday.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7758. In case EUR/GBP manages to breach the first resistance level at 0.7779, it will probably continue up to test 0.7818. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7839.
If EUR/GBP manages to breach the first key support at 0.7719, it will probably continue to slide and test 0.7698. With this second key support broken, the movement to the downside will probably continue to 0.7659.
The mid-Pivot levels for today are as follows: M1 – 0.7679, M2 – 0.7709, M3 – 0.7739, M4 – 0.7769, M5 – 0.7799, M6 – 0.7829.
In weekly terms, the central pivot point is at 0.7760. The three key resistance levels are as follows: R1 – 0.7842, R2 – 0.7933, R3 – 0.8015. The three key support levels are: S1 – 0.7669, S2 – 0.7587, S3 – 0.7496.
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