- New Zealand’s business confidence dropped in December.
- The data, however, bettered estimates but so far has failed to put a bid under the NZD.
- NZD/USD bulls are looking exhausted and the pair may see a corrective pullback.
A better-than-expected New Zealand business confidence data released at 00:00 GMT has so far failed to put a bid under the NZD/USD, leaving it largely unchanged on the day near 0.6595.
New Zealand’s business confidence index to -13.2 in December, narrowly beating the forecast of -13.6 and up from the preceding month’s -26.4.
Meanwhile, the ANZ Activity Outlook (Dec) came in at 17.2% compared to the expected 17.5% and down from November’s print of 12.9%.
The minor spike from 0.6594 to 0.66 witnessed immediately after the release of the business confidence was quickly reversed.
The bulls look exhausted, as indicated by an overbought reading on the relative strength index, having failed to cheer the better-than-expected China retail sales and industrial production data released on Monday. In fact, the pair suffered minor losses on the first trading day of the week despite the Sino-US trade optimism.
As a result, NZD/USD could suffer a deeper corrective pullback during the day ahead.
That said, the bullish outlook would be revived if resistance at 0.6636 (the high of Friday’s inverted hammer) is scaled.
Technical levels
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