NZDUSD hits support after dismal NZ business confidence data

August 31, 2015

The kiwi has been assaulted by bears amidst a risk-off tone in the market and following the release of softer than expected business confidence data. Investor sentiment took a turn for the worst at the beginning of the Asia session due to news out of China that Beijing will stop directly buying up shares to shore-up equity markets and it hasn’t really recovered. Major equity markets in the region are in the red across the board, with the ASX 200 and Nikkei 225 down around 1.6% and 1.7% respectively; the latter is also feeling the sting of a stronger yen.

ANZ’s New Zealand Business Confidence Index dropped to -29.1 in August, from -15.3 in the prior month. This is lowest the index has been since mid-2009 when it was nervously recovering after the GFC. Businesses in NZ are clearly feeling the weight of falling commodity prices and lacklustre levels of global demand, as well as a softening domestic economy.

NZDUSD

NZDUSD dropped on the back of today’s figures and is now testing an all-important support zone around 0.6400/10. A confirmed break here could put the pair on the defensive in the lead-up to this month’s US NFP numbers, due out on Friday. However, price action is looking a little oversold after last week’s extreme volatility, thus we can’t rule out a test of resistance around 0.6500 in the near-term.

Publication source
FOREX.com information  FOREX.com reviews

September 27, 2016
The US election beta
Having obsessed about an event that did not happen this month (a Fed tightening), markets now turn to obsessing about an event that will happen, namely a change of US President...
September 27, 2016
Oil prices are moving towards stabilisation
The oil prices start the week on an upbeat note as the informal OPEC meeting may end with a positive agreement for the oil market, which could resolve in production kerbs and freeze said the Algeria’s Energy Minister on Sunday...
September 27, 2016
US politics cast shadow over NZD
It's been an interesting start to the week as politics is looking likely to take centre stage amongst a market which is becoming increasingly worried over the result of the US presidential election...

HotForex Rating
Grand Capital Rating
XM Rating
FXCM Rating
FIBO Group Rating
FBS Rating

Banc De Binary Rating
OptionRally Rating
OptionBit Rating
Binary Brokerz Rating
Empire Option Rating
OptionsXO Rating