NZD/USD smashed below 0.6600 on dreadful NZ business confidence

FXStreet (Mumbai) - The offered tone surrounding the NZD/USD pair keeps growing bigger in the Asian morning, knocking-off the pair to fresh four day lows below 0.66 handle, as the Kiwi was hit by a worse than previous NZ ANZ business confidence survey which came in at lowest in four years.

NZD/USD drops from 0.6612

Currently, the NZD/USD pair trades -0.40% lower at fresh four day lows of 0.6578, losing the 0.66 handle post data. The NZD/USD pair extended gains and came under renewed selling pressure as bears regained total control after ANZ business confidence survey (-15 now, previous -2.3) disappointed markets falling to levels not seen in the last four years on the back of sliding commodity prices especially dairy products.

Despite some positive remarks came out from the policy statement and from RBNZ Wheeler’s recent speech, the kiwi remains vulnerable to further downfall as commodities continue their decline and the divergence between monetary policies is likely to persist.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6612 (Today’s High) levels and above which it could extend gains 0.6698 (July 23 High). To the downside immediate support might be located at 0.6556 (July 27 Low) below that at 0.6503 (July 20 Low) levels.

Another huge disappointment in the ANZ activity outlook

With a very weak commodity sector, especially in dairy products, the ANZ Business confidence for July came in even worse than last months that was the worst in four years, this time around we are at -15 while the previous was -2.3.
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