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NZD/USD drops to 6-day low on horrible NZ business confidence number

  • NZD offered across the board on sharp deterioration in business confidence.
  • NZD/USD fell more than 30 pips in a knee-jerk reaction to dismal data release.

Kiwi fell to a six-day low of 0.6845 a few minutes ago after the ANZ business confidence came in at 39.3 for Oct. vs -10.1 last month. The activity outlook index also retreated sharply to 6.5 vs. 22.2 last month.

The data show businesses who expect general conditions to get worse in the coming year, outnumber those who expect to see an improvement.

The sharp deterioration in confidence figures could be associated with

political uncertainty and may have caught NZD traders by surprise, as a few in the market were expecting a rebound in the business confidence.

As of writing, the pair is trading at 0.6850 levels.

NZD/USD Technical Levels

A break below 0.6845 (Nov. 14 low) would open up downside towards 0.6818 (Oct. 27 low) and 0.68 (zero levels). On the other hand, a break above 0.6864 (10-day MA) could yield re-test of 0.69 (zero levels) and 0.6945 (Nov. 28 high).

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