NZD/USD hesitates on softer business confidence, activity outlook

• NZ data continues to soften, exposing the Kiwi's underbelly.
• Aisa markets are facing thin volumes with Japan and China off for extended weekends.

The Kiwi took a soft step lower in early Monday trading after low-impact New Zealand data came out, but the pair is still holding steady near 0.7080.

The NZD/USD knocked slightly lower on reaction to ANZ's Business Confidence, which decreased to -23.4 (prev. -20), while Activity Outlook also decreased to 17.8% from 20%.

Next up for Kiwi data will be Building Permits and AiG's Performance of Manufacturing Index, due at 22:45 and 23:30 GMT respectively.

NZD/USD Levels to watch

After an excessive decline, the NZD/USD could be ready for a bounce, and as FXStreet's own Ross Burland noted, "daily RSI diverges on the new low and a bull hammer formed, so the market could be looking for a short squeeze while the border trend remains bearish and rallies likely to hit a road block. Longer-term techs still suggest lower levels, rallies likely to be sold still. The bears can target 0.7055 and 0.7030. To the upside, 0.7150 guards 0.7185 resistance."