Global macro overview for 20/03/2017:
The Westpac New Zealand Consumer Confidence Index data were worse than expectations. This measure of consumer sentiment declined to 111.9 points in the first quarter of 2017. The reading above 100 separates optimism from economic pessimism, but the indicator has been on a general downtrend since early 2014.Westpac's quarterly survey tracks consumer optimism in New Zealand's economy, including views on personal finances and economic expectations. These factors are seen impacting consumer spending, which is a key driver of the domestic economy.
Let's now take a look at the NZD/USD technical picture at the H4 timeframe. The bulls have managed to retrace 50% of the previous swing down, but the last candle is a clear rejection indicator. Moreover, the candle closed below the technical support at the level of 0.7049 which is another clue, that the downturn will now continue. The next support is seen at the level of 0.6968 and the next resistance is seen at the level of 0.7070.
