FxWirePro: NZD/USD breaks above cloud, Kiwi extends upbeat monthly Trade Balance led gains

NZD/USD chart - Trading View 

NZD/USD was trading 0.73% higher at 0.61 handle at around 06:40 GMT, scope for further gains.

Kiwi remains bid after upbeat New Zealand trade figures released overnight. A weak US dollar also underpins spot.

New Zealand’s March month headline Trade Balance grew from a revised down $531M to $672M on MoM versus $-3.46B actual and $-3.3B prior on YoY. 

Further details show the Imports rose from $4.34B (revised) to $5.14B, while Exports also rose from $4.87B to $5.81B.

Cautious market sentiment ahead of the crucial GDP data and FOMC meeting keep the dollar under pressure.

The initial estimate of US Gross Domestic Product for the first quarter is projected to show an annualized contraction of around 4%. 

The Federal Reserve will probably leave its interest rates unchanged. Focus will be on forecasts for growth, inflation, employment, and interest rates, as well as the tone by Jerome Powell.

NZD/USD price has broken above daily cloud and technical indicators support upside. Scope for test of 110-EMA at 0.6228 ahead of 61.8% Fib at 0.6264.