- New Zealand NZIER business confidence dropped from -17 to -29.
- The NZD/USD pair refrained from declining beneath 0.6770.
- The US and New Zealand data in focus for near-term fresh direction.
NZD/USD trades near 0.6790 during the Asian session on Tuesday. The quote recovered from the low of 0.6774 despite weak print of the quarterly NZIER business confidence from New Zealand. Traders may now focus on the US durable goods order and New Zealand GDT price index for fresh impulse.
During early Tuesday, New Zealand’s quarterly NZIER business confidence, also known as NZIER QSBO, dropped to -29 from -17 during the first quarter (Q1) of the present year.
Even if optimism surrounding the US-China trade deal and recent improvements in China’s purchasing managers’ indices (PMIs) placate bears, soft domestic data and stronger US Dollar (USD) continued to portray the NZD/USD pair’s weakness.
The quote failed to clear 50-day simple moving average (SMA) on Monday as the USD rose against the majority of its counterparts on upbeat ISM manufacturing PMI and also because of the optimism surrounding its likely trade deal with China.
Traders may now concentrate on February month durable goods orders from the US ahead of shifting their attention to the fortnightly release of New Zealand’s GDT price index.
The US durable goods orders growth may disappoint greenback bulls if matching -1.8% market consensus versus +0.3% revised prior. The non-defense capital goods orders ex-aircraft could flash 0.0% mark against +0.8% earlier. On the other hand, the GDT price index may also register the slow growth of +0.3% versus +1.9% previous.
NZD/USD Technical Analysis
In addition to an upward sloping support-line stretched since January 22 at 0.6770, 200-day SMA figure of 0.6785 could also challenge Kiwi bears.
Meanwhile, a daily closing beyond 50-day SMA level of 0.6830 becomes pre-requisite for buyers to aim for 0.6880 and 0.6910.
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