Its been the third consecutive trading day that the New Zealand dollar stumbles down against the US Dollar. In the past week, the performance of the New Zealand Dollar was quite the opposite. It was the consumer price index that led the NZDUSD to grow a little since the reading improved by 5 percent in April up beating the consensus of the economist which was 0.3 %.
However, the start of May has not been so good for the pair as yet. The pair keeps on deteriorating and is being exchanged for the price of 0.6034. Although many support levels seem around to be protecting it from decreasing further still, the market factors look not to be generous enough to allow the NZDUSD to prosper in the near future.
As far as the technical bias is concerned, it may remain bullish since the pair’s price market a higher high in the recent upside move. But again, this might not be true for the following week. Due to the current financial crisis caused by this novel pandemic, the market is exposed to uncertainty. Prices go up and down in no time following the latest economic releases.
On the other hand, the stats released by ANZ concerning the business confidence levels in the country also suggests the downfall. They are being increased adversely causing the situation to go even more vulnerable. The negative figure increased from -63.5 to -66.6 down beating the economist expectation which was -69.5. It seems that the economist had not anticipated this much downturn. The business index allows the analysts to analyze the overall business prospect and is generally be regarded as favorable if it remained above 50 which in this case is unfortunately way lower than that.
Trading the NZDUSD around current levels is not suggested since it may keep falling until the end of this week. Therefore, the opening of both short term and long term positions might not work.