NZD/USD: under pressure on poor business conditions

NZD/USD is currently under offer on the back of the New Zealand Institute of Economic Research Quarterly Survey of Business Opinion, reporting that business confidence had dropped in the first quarter of 2016. 

A net 2 percent of firms surveyed expected general business conditions to improve compared with a net 15 percent in Q4 of 2015. At the same time, the report suggested that there could be further rate cuts below 2%.

NZD/USD levels

The bird is reversing the rally from 0.6668 the low on 27th March to recent highs of 0.6966 and is now below the 200 1hr sma at 0.6800, but remains in bullish territory within the ascending daily channel from 0.6347 Jan lows. A break of the 200 dma at 0.6607 would be the required level to alleviate the upside potential.