Today, the New Zealand dollar (NZD) declined by less than 0.6800 against the US dollar (USD). The pair’s value fell as a result of the publication of the October trade balance.
When we examine the graph more closely, we can see that the NZD has been self-suffering for an astonishing period of one and a half months. If we consider the most recent loss, it is not transitory and will result in a break in the expected fundamental cash advance in NZD.
The recent discharge of Trade Balance publications acted as the driving force behind the collapse of New Zealand currency. The FXStreet.com registered Trade Balance at $-4.92 B in October compared to the month before the index of $-4.11B. The trade balance is the difference between the value of the country’s exports and imports over the year. A positive value represents a trade surplus, and if there is a stable demand in return for exports, this will result in a rise in the balance of trade, which could be positive for the NZD and vice versa.
This is important for the NZD/USD currency pair as it is supported by the horizontal support that contractually obligates the pair to raise the cost.
In terms of investing, there is still a danger for investors while those who still own this stock may keep it and wait until there is a reasonable opportunity.