Global macro overview for 28/04/2017:
The ANZ Bussiness Confidence data declined slightly in March. The results of the ANZ Bank Business survey held among businesses nationwide revealed, that a net 11% of respondents expected the economy to improve over the next 12 months, down slightly form an 11.3% optimism level in the March poll. The main reason for the decline might be the fact that New Zealand's economy ran into a rough patch at the end of 2016, with GDP accelerating at the slowest pace since 2015. This might deteriorate further the business confidence, which was in a gradual decline since last September, as the weakness in the economy was attributed to declines in the agriculture and manufacturing. In conclusion, the sentiment in business in New Zealand looks still decent in the longer term.
Let's now take a look at the NZD/USD technical picture on the H4 timeframe. The price is trading in oversold market conditions, close to the recent lows at the level of 0.6846. Nevertheless, the hammer candlestick pattern is indicating a demand coming to the markets, so the biggest bounce is still possible. The next support is seen at the level of 0.6890 and only a sustained breakout above this level would change the temporary bias to bullish.
