28 May 2014
NZD/USD selling-off on downbeat NZ bus conf
FXStreet (Bali) - NZD/USD is on the slide in sympathy with the sharp decline seen in NZ business confidence, with the exchange rate posting a session low of 0.8541 from a 0.8563 pre-release.
Cameron Bagrie, Chief Economist at ANZ, notes: "A net 54% of firms are optimistic about general prospects; that’s incredibly healthy by historical norms. However, this month’s reading is down 11 points on the month prior and 17 points from February’s peak. Our seasonally adjusted estimate dropped 15 points in the month, with confidence down in all sub-sectors."
Technically, NZD/USD continues at a dangerous area just above 0.85, with an acute ascending trendline off March 20 lows, within the context of a possible expanding triangle, still capping the downside. A decisive breakout of 0.84 is needed for loses to accelerate towards the next possible target at 0.8440/50. On the upside, 0.86 remains the key area to be re-taken to ease the bearish pressure.
Cameron Bagrie, Chief Economist at ANZ, notes: "A net 54% of firms are optimistic about general prospects; that’s incredibly healthy by historical norms. However, this month’s reading is down 11 points on the month prior and 17 points from February’s peak. Our seasonally adjusted estimate dropped 15 points in the month, with confidence down in all sub-sectors."
Technically, NZD/USD continues at a dangerous area just above 0.85, with an acute ascending trendline off March 20 lows, within the context of a possible expanding triangle, still capping the downside. A decisive breakout of 0.84 is needed for loses to accelerate towards the next possible target at 0.8440/50. On the upside, 0.86 remains the key area to be re-taken to ease the bearish pressure.