The New Zealand dollar fell against the dollar after weak data on trade. Should traders expect the downward trend to continue? What does the 3 September NZDUSD Fundamental Outlook explain?
3 September, OctaFX – The New Zealand bureau of statistics released trade data that was weaker than expected. In the second quarter, the export prices rose by 2.4%, which was lower than the expected 3.0%.
This data measures the average price of the country’s exports. The import price index rose by 1.7%, which was weaker than the expected 2.0%. In total, the terms of trade in the quarter was 0.6%, lower than the expected 1.0% gain. The terms of trade data measure the ratio of an export to the price of an import per commodity.
NZDUSD Fundamental Outlook
The NZDUSD pair fell to an intraday low of 0.6593. This was the lowest level since mid-August. It is now trading at 0.6597, with the downward trend being a strong one as confirmed by the Average Directional Index (ADX).
The MACD is in the lowest level since Monday last week. Lacking an important support, the pair is likely to continue moving lower.
This article about 3 September NZDUSD Fundamental Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.