NZD, USD on the move on Tuesday as investors are awaiting more trading impetus from big economic data regarding the housing sector in the US.
NZD on the Move
New Zealand’s just released its business confidence report, which showed that 37.8% of the country’s businesses felt pessimistic about the near future compared to 39.3% in November. Although this number is more optimistic than last month’s, negativity still hovers above all the five major economic sub-sectors. But, the good news is that NZ companies gave a positive outlook on their own activity, which is directly linked to GDP growth. Corporate own activity figures showed a rise to +16 from +7 in November.
However, despite the positive forces driving the kiwi up, the ‘lack of capacity in the construction sector’ and ‘flattening off in net migration’ account for a ‘dampening’ in ‘near-term growth’, ANZ Chief Economist Sharon Zollner said.
Moved by the big economic data, NZDUSD pipped up to test fresh tops at 0.70084 in the morning. As USD traders are somewhat cautious ahead of housing sector figures, NZD gained momentum against its greenback counterpart, with the pair hitting a daily open of 0.69933. Buying on the dips might be a good strategy to follow near-term.
USD on the Move
USD remains steady against its major counterparts today, as USD bulls and bears alike are lying in wait for fresh impetus from the US housing sector data and tax bill progress.
The US dollar index, which measures the USD buying power against that of other six major currencies, started the day steady at 93.19.
EURUSD added a few pips this morning, kicking off with a daily open at 1.17839. As we advance into the trading day, the pair seems to target the psychological 1.1900 levels.
Comparatively, GBPUSD opened at 1.33786 and revolves now around 1.33735-6.
USDJPY started with a daily open at 112.574 and moved slightly up to 112.611. USDCAD was little moved by the positive sentiment surrounding the US tax bill, starting at 1.28664 (daily open). Technical and resistance levels are not to be ignored.