The US dollar continued to decline against the European currency and other risky assets at Tuesday's trading amid disagreements that existed under the tax reform, as well as on the bill on government spending.
On Tuesday evening, the law on a new tax reform was adopted by the House of Representatives with 227 votes "for" and 203 "against". However, it is just the beginning. The expenses will follow and the process is not as simple as it seems. Today, it also became known that the US Senate approved a reduction of taxes for 1.5 trillion dollars by 51 votes in favor and 48 against.
Meanwhile, Republicans in the House of Representatives announced that they are ready to postpone the vote on the bill on government spending. This happened because they failed to agree with the Democrats with divided opinions on the further strategy and plans for the government's spending. The main issue is the financing of military expenditures, and it was expected that the House of Representatives would be the first to vote on it.
Against this background, as well as against the background of unconvincing fundamental statistics, the US dollar continued to decline.
Yesterday, the US Department of Commerce became aware that the current account deficit of the US balance of payments in the third quarter of this year fell to $ 100.57 billion. Economists had expected a deficit of $ 116.0 billion in the third quarter.
As for the technical picture of the EURUSD pair, buyers of risky assets need to cope with the level of 1.1850. They also need to stay above the level of 1.1825 for as long as possible, as a breakthrough of this range may lead to a larger sale with the upgrade of the lower border of the rising channel in the area of 1.1800. The main goal of the buyers remains to be the output on 1.1875 with the update at 1.1900.
The New Zealand dollar fell against the US dollar after weak data indicating that New Zealand's foreign trade deficit rose in November.
According to the report of the New Zealand statistics department, the deficit of foreign trade in goods for November 2017 was at the level of 1.2 billion New Zealand dollars. Meanwhile, many experts predicted that the deficit would be 500 million NZ dollars. The current account deficit in the balance of payments of New Zealand in the third quarter amounted to 4.679 billion New Zealand dollars.
As for the technical picture of NZDUSD, much will depend on whether the buyers will be able to keep the trading instrument above the level of 0.6960, as the breakthrough of this level will lead to an imminent sale to the support area level of 0.6920 with an output to 0.6900. The main goal of buyers will be to return to the upper border of the channel 0.7035.