New Zealand Institute of Economic Research (NZIER) Survey of Business Opinion was released earlier today.
Data showed business confidence dropped in the first quarter of 2016, with a net 1% of businesses expecting a deterioration in the economy in the next six months.
Short term drivers, such as NZ-US interest rate spreads and commodity prices have been pointing downside for the pair. Technicals on confirm downside for the pair.
Price action has broken below 10-DMA at 0.6797. is biased south, Stochs have rolled over from overbought zone and the line is on the verge of a crossover on signal line.
Immediate resistance is seen at 0.6797 (10-DMA) ahead of 0.68 handle. While supports are located at 0.6720 (Mar 22nd lows) and then 0.6680 ( Dec 17th lows).
Broader market sentiment along with upcoming US data and the Fonterra’s dairy auction results will provide fresh impetus to the pair.
Recommendation: Good to sell rallies around 0.6780/90, SL: 0.6840, TP: 0.6720/0.67/0.6680