The New Zealand Dollar (NZD) inched lower against the US Dollar (USD) on Thursday, decreasing the price of NZDUSD to less than 0.6800 following some key economic releases. The technical bias shall remain bearish because of a lower low in the recent downside move.
NZD/USD Technical Analysis
As of this writing, the pair is being traded around 0.6757. On the upside, a hurdle can be noted near 0.7395, an immediate horizontal resistance level ahead of 0.7400, the psychological level and then 0.7478, the high of the last major upside rally as demonstrated in the given above chart.
On the downside, a support can be noted around 0.6708, an immediate trendline support ahead of 0.6700 the psychological number and then 0.6653, another key horizontal support as demonstrated in the given below chart. The technical bias shall remain bearish as long as the 0.7500 resistance area is intact.
New Zealand Business Confidence
New Zealand business confidence hit a seven-year low in June as cost pressures weigh on profitability and the downbeat sentiment is beginning to impact on future planning.
A seasonally adjusted net 19 percent of firms surveyed in the New Zealand Institute of Economic Research’s quarterly survey of business opinion expect economic conditions to deteriorate over the coming months compared with a seasonally adjusted 10 percent that had expected a deterioration in the prior quarter. It was the lowest since March 2011.
The expected easing in demand point to softer economic growth in the second half of 2018, according to NZIER.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.