Consolidation Continues, Business Confidence Falls

NZD/USD prints at $0.6380, ~0.1% firmer in yesterday's trading.

• The pair continued to consolidate, respecting recent ranges in yesterday's trading. Having failed again to sustain a break through $0.64 the pair was pressured early in the European session as bid in USD/JPY spilled over into wider greenback strength.
• Support came in ahead of $0.6360, and the pair firmed as US Equity Futures recovered from session lows, before meeting resistance at $0.64. NZD/USD traded in a narrow $0.6380/90 range for the remainder of the session.
• NZIER Q4 Business Survey came onto the wires this morning. Net 70% of businesses expect the economy to deteriorate and net 71% of firms expect to raise prices in Q1 2023. Net 13% of firms reporting weaker trading in Q4 2022, and net 33% of firms expect weaker trading in Q1.
• Technically NZD/USD continues to consolidate, bulls look to sustain a break above $0.64. Bears look to first break the 20-Day EMA at $0.6335 to turn the tide.
• With an empty domestic calendar, Chinese Q4 GDP is the main regional focus today. Any deviation from the expected YoY growth figure of 1.6% could affect wider risk sentiment in the Asian session.