Forecast: How will N.Z. trade balance data impact NZD/USD?

NEW YORK (Forex News Now) – New Zealand’s statistics bureau is due on Tuesday to release a key report on the country’s trade balance in August, in one of the day’s major realtime forex news events.

Statistics New Zealand is expected to say that the country’s trade deficit widened to NZD 365 million during the month, according to two currency market trading news outlets.

The bureau is scheduled to publish the data at 9:45 A.M. GMT; as such, the report is likely to late U.S. online FX trading.

According to indicator analysis, if the deficit widens less than forecast, shrinks, or even swings to surplus, the report could push NZD/USD toward resistance around the high of Sept. 22, 0.7416.

But should the data show a greater-than-expected increase in the deficit, the currency pair could be could be pushed toward support around the daily low, 0.7304.