NZD/USD aimed at 0.70 with buyers getting swamped out
- The Kiwi has lost its conviction and is trading on the low side.
- Kiwi trade balance figures could easily get overshadowed by Friday's major GDP release for the US.
The NZD/USD is still touching into the bottoms, playing near 0.7060 in the Asia session.
The Kiwi has had a rough run against the US Dollar lately, declining for seven straight trading days as the Greenback gets boosted by rising US Treasury yields.
Thursday's Trade Balance figures for New Zealand drop at 22:45 GMT, with the headline MoM Trade Balance for March forecast at $200 million, a slight decline from the previous figure of $217 million, but with a large chunk of the macro figures coming out of New Zealand happening to miss the mark, a miss for expectations could be on the cards.
Friday will be the ringer for the week, capping off the action with preliminary GDP figures from the US hitting markets at 12:30 GMT. Annualized QoQ GDP for the US is expected to come in at 2.3% versus the previous 2.9%, and while a softening economic outlook for the first quarter has been anticipated, a miss for the figure could see serious derailment in the current US Dollar trend.
NZD/USD Levels to watch
The pair has tumbled deeply into bearish territory over the last two weeks, and support is looking thin until swing highs from last November mark out potential turnaround points from 0.6980 down to 0.6880, while a bearish correction from here will be faced with March's swing low near 0.7150, with the 50.0 Fibo level around 0.7225.