Significant data into Tuesday for the New Zealand economy, with Building Consents m/m (previously -3.8%) and the ANZ Business Confidence Survey (previously 34.4).
With a strong rally over the past 1-2 weeks starting to fade, the focus into these important data points has shifted back to the downside and to supports.
NZUSD downside risks
The Monday push down to the .7505/00 chart/ retrace support area reinforces negative pressures for this week.
For Tuesday, the skewed risk is lower, from the weekly Gravestone Doji pattern, which is questioning the previous rally through .7616, which secured a Double Bottom.
Below .7371, however, is needed for a shift back to a broader, neutral range theme.
- We see a downside bias through .7500; break here aims for .7430/20, which we would look to try to hold.
- But above .7568 aims for .7594, maybe .7611, which we would look to try to cap.
Short-term Outlook – Upside Risks:
- Whilst holding above .7371, into April we see a more positive tone with the bullish threat back to the new peak at .7697.
- Above here targets .7703/11 and .7891.
What Changes This?
Below .7371 signals a neutral tone, only shifting negative below .7274.
2 hour chart