Global macro overview for 10.06/2016:
The New Zealand electronic card retail sales declined 0.3% in May from the seven-month high. According to the Statistics New Zealand,electronic card transactions rose 3.3% after a 7.8% increase in the 12 months through April. Electronic card transactions is a good measure of a monthly performance of New Zealand's retail sector, which has significant implications on consumer spending. When the electronic card transactions increase, then the consumer sentiment improves as people tend to think more optimistically about the economy. In conclusion, the consumer spending is critical to New Zealand's economy as it still struggles to gain the momentum despite the RBNZ rate cuts since 2015.
Let's now take a look at the GBP/NZD technical picture in the daily time frame. The downtrend from the August 2015 is obvious, but the current outlook is not that clear. Bulls managed to make a higher high at the level of 2.2000 and the price almost hit the 100 DMA. Nevertheless, they lost it again as the new marginal low was made shortly after the rally, putting bears back in control over the market. Please notice there is still unfilled gap at the level of 2.0630, so the bulls might try again to rally higher.