“¢ Investors looked past the latest optimism over upbeat Chinese manufacturing data.
“¢ Dismal domestic business confidence prompts some aggressive selling on Tuesday.
“¢ A follow-through USD uptick adds to the pressure ahead of today’s US macro release.
The NZD/USD pair remained heavily offered through the early European trading session and tumbled farther below the 0.6800 handle, or over three-week lows in the last hour.
With investors looking past the latest optimism over China’s upbeat manufacturing data, the pair extended the overnight sharp intraday retracement slide from multi-day tops and was further weighed down by today’s disappointing release of the quarterly NZIER business confidence.
In fact, the index extended its recent declining trend and fell to -29 during the first quarter of 2019, down from -17 recorded in the previous quarter and back closer to the recent multi-year low of -30 touched during the third quarter of 2018.
Adding to this, the US Dollar built on the previous session late up-move, triggered by stronger than expected ISM manufacturing PMI, and exerted some additional downward pressure on the major, taking along some short-term trading stops placed near the 0.6800 round figure mark.
Moving ahead, market participants now look forward to the key release of the US durable goods order data and NZ GDT price index, due later during the North-American session, for some meaningful trading opportunities.
Technical levels to watch
Immediate support is pegged near mid-0.6700s, below which the pair is likely to accelerate the slide further towards Feb. swing lows, around the 0.6720 region, en-route the 0.6700 round figure mark. On the flip side, the 0.6800 handle now seems to act as an immediate resistance, which if cleared decisively might lift the pair back towards challenging the 0.6825-30 supply zone.
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