NZD/USD: Range play continues after downward revision of New Zealand's Business Confidence


  • NZD/USD trades in a 50-pip range for the fourth straight day. 
  • New Zealand's Business Confidence for June has been revised lower. 
  • China's official Manufacturing PMI reached three-month highs in June.

NZD/USD remains trapped in the narrow range of 0.64 to 0.6450 for the fourth straight trading day on Tuesday. The struggle for clear directional bias continues despite the dismal data released at 01:00 GMT. 

New Zealand's ANZ Business Confidence for June was revised lower to -34.4 from the initial estimate of -33.00. The indicator had declined to -41.8 in May. Meanwhile, the ANZ Activity Outlook for June came in at -25.9%, following May's -38.7% print. 

While the Business Confidence improved from lows seen in May, it still remains in the negative territory. In addition, activity indicators remain at recessionary levels and employment indicators are particularly grim, ANZ said. 

As such, one may argue that the NZD bulls have little reason to put a strong bid under the Kiwi. However, traders should note that China reported better-than-expected PMI numbers early Tuesday. In fact, China's NBS Manufacturing PMI rose to three-month highs in June. Hence, a range breakout cannot be ruled out. That said, the Kiwi may come under pressure if the geopolitical tensions between the US and China escalate due to the latter's decision to pass the controversial Hong Kong security law. 

So far, there are no signs of stress in broader markets. The futures tied to the S&P 500 are currently reporting a 0.30% gain, a sign the US stocks are likely to extend Monday's rally. Therefore, Kiwi and high beta currencies could draw stronger buying pressure. 

Technical levels

NZD/USD

Overview
Today last price 0.6421
Today Daily Change 0.0000
Today Daily Change % -0.00
Today daily open 0.6421
 
Trends
Daily SMA20 0.6456
Daily SMA50 0.6231
Daily SMA100 0.6177
Daily SMA200 0.6326
 
Levels
Previous Daily High 0.6444
Previous Daily Low 0.6403
Previous Weekly High 0.6534
Previous Weekly Low 0.6383
Previous Monthly High 0.6241
Previous Monthly Low 0.5921
Daily Fibonacci 38.2% 0.6428
Daily Fibonacci 61.8% 0.6418
Daily Pivot Point S1 0.6401
Daily Pivot Point S2 0.6381
Daily Pivot Point S3 0.636
Daily Pivot Point R1 0.6442
Daily Pivot Point R2 0.6464
Daily Pivot Point R3 0.6484

 

 


 

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