The New Zealand dollar traded lower against its U.S. counterpart on Tuesday, hovering close to a five-year trough after the release of downbeat economic reports from New Zealand and as the safe-haven greenback remained broadly supported amid Greek debt concerns.
Data earlier showed that the ANZ Business Consumer Confidence for New Zealand fell by 2.3% in June, after an increase of 15.7% the previous month.
A separate report showed that New Zealand’s Building Consents were flat in May after a 0.9% slip in April, whose figure was revised from a previously estimated 1.7% decline.
Meanwhile in the U.S, data showed that consumer confidence rose 101.4 in May, compared to expectations for 97.1 rise, after a 95.6 previous reading. However a revision of the previous month was made to 94.6 but the dollar remained supported as Greece’s bailout program was due to expire on Tuesday and without a rescue package in place Athens would almost certainly fall into arrears on a loan repayment due to the International Monetary Fund.
Intra-day bias remains bearish after price successfully breached 0.67855 support with 21 and 55 EMA crossed downward. Also SSRC and MACD oscillator shows bearish momentum is still intact, so i’m expecting more decline to a round number in the medium term.
Tomorrow investors will be taking a close look at the U.S ADP Non-Farm Employment Change and ISM Manufacturing PMI.