Today, the NZD is rising against the US$ with the green candle tag showing on the graph. The rise brings NZDUSD’s price at more than 0.5700. As we look at the graph then we come to notice that from the beginning of the month NZD’s self suffered a very bad time, thus this rise plays an important role in NZD currency development.
When we turned our attention to US launches in March, then we realized that it had the numbers of news that devalued the Strengthening of the US Dollar and thus boosting the NZD currency. Here we have only highlighted a few recent news from the US that provokes the strength of the NZD currency.
The initial jobless claims plummeted from 281 K to 211 K on March 20, 2020, rendering the US dollar low. That provides a measure of the strength of the labor market. A trend upwards in that number shows that this market is weak. In general, an upward trend is taken as negative or bearish for the USD.
Then the second news is about The Building Permits s.a., which is the number of permits for new construction projects dropped from 1.55 Million to 1.47 million this month. It is considered a leading indicator of the housing market. if the lower the number of permits, this will be assumed as less optimistic (or bearish) for the USD.
This is good for the NZDUSD as it is backed by numerous levels of support that will help the pair up the price. At first, there is immediate trendline support at 0.5679, then there is another trendline support at 0.5630, and then the main horizontal support backed the pair’s price at 0.5466.
While the NZDUSD has been going through its good days for a few days, seeing the low level of support in the graph above shows that there is less chance in the NZD currency of getting better over time against USD, so if short-and long-term traders delay their investment for a while, then it could be a wise option.