Global macro overview for 21/12/2016:
The trade Balance data from New Zealand had been released overnight and it disappointed the market participants. The merchandise trade deficit widened to $705 million in November, down from $815 million in October while market analysts expected a slight tightening to -$500 million. Moreover, compared to the previous year, the value of goods exports went down by $219 million $3.86 billion. The main reason behind the shortfall was the decrease in the shipments of meat and offal that felt 31%. Exports of milk powder, butter and cheese, in turn, advanced 2.6%, but the overall New Zealand exports to the European Union dropped 32% and to the United States by 23%, while other export destinations, including China, Japan and Australia, were little changed.
Let's now take a look at the NZD/USD technical picture at the daily time frame. After the golden trend line test and rejection the price is trading below all of the moving averages, so, the bears are in full control over this market. The next immediate support is seen at the level of 0.6879, but if broken, then there is no important technical support down to the level of 0.6674.
