New Zealand Recovers
New Zealand's Activity Outlook showed a strong value at 37.2% versus the previous month's value at 39.6% and New Zealand's Business Confidence dropped down to 16.6 in February from a previous value of 21.7 in January.
New Zealand reported a trade deficit of $285 million in January which dropped down to $25 million. New Zealand's exports rose to $13 million over the forecasted rates at $3.90 billion. And the imports rose to 8.0 percent versus expectations for $3.90 billion.
New Zealand's Merchandise for dairy products such as milk powder and cheese paved the growth of crude oil, capital goods and consumption goods. However, there was a drop under logs and wood articles with intermediate goods. The good news is that the trade weighted index rose to 9.2 percent from January 2016.
Canada's crude oil prices dropped last week. The oil prices have also remained steady in the past couple of months. The Bank of Canada is likely to examine the inflation rise and Governor Stephen Polozlooksto see through the various policies and preserve them throughout this year. The Bank of Canada will soon release a press statement keeping rates at 0.50%.
A closer look at price action highlights today's near-term confluence support at 0.9453 region defined by breaking the 100SMA. The price has already gone past the 50EMA on the 4-hour time frame along with oscillators well placed above 80.0 levels.
With the pair finding support at 0.9443 levels, it has rebounded off the near-term support and constitutes an outside-day reversal- bullish movement. Initial resistance stands at 0.9491 levels with a break targeting 0.9519 levels. From a trading standpoint, we favor strong strength and look for highs. With a break above this formation, we suggest a more significant high for the index.
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