FX.co ★ Global macro overview for 27/10/2016

Global macro overview for 27/10/2016:

The Trade Balance data from New Zealand has outperformed economists' expectations as the trade gap widened. The nation's Trade Balance showed a deficit of NZD 1,4360 million (expected -1,145 million NZD, prior was -1,243 million , revised from -1,265 million). Moreover, New Zealand usually records a huge deficit during this time of the year due to a decrease in primary sector export volumes before winter. Seasonally adjusted, the trade deficit was quite decent at NZD 628 million. Taking into account annual basis, it came in at NZD 3,4040 million. It is worth to notice, that the annual deficit is smaller compared to the late 2015 through the first half of 2016. In conclusion, a seasonally adjusted deficit continues to be one of the largest in recent years, while the annual deficit has been on a broadening path since July.

Let's now take a look at the GBP/NZD technical picture in the daily time frame. The sequence of consecutive lower highs and lower lows is clearly pointing out that the downtrend is still in progress and so far there is no sign of reversal. The market trades below all of the moving averages and out of the golden channel. The next support is seen at the level of 1.6912 and the next resistance is seen at the level of 1.7705.