The New Zealand Dollar (NZD) took a good move towards upside against the US Dollar (USD) last week. The increase in the value of the pair resulted after NZ business PMI released. According to this, it remained 51.3, this month, as compared to 50.2, the month before, but it didn’t meet the economists’ expectation which was 53.1.
However, no change was witnessed in the prevailing interest rate of the country. it just stayed the same this month as it was 1.5%, the month before.
Earlier, electronic card retail sales as announced by Statistics New Zealand was not in favor of the pair. It measures buy ratio made in New Zealand on charge, credit and store cards. The figure gives a trace of solidarity in the retail division and impacts loan cost choices. A high number is commonly considered as positive (bullish) for the New Zealand Dollar (NZD), while a powerless number is viewed as a negative (bearish) market for the New Zealand Dollar (NZD).
On the other side, the construction sector of the country remained reasonably strong but it would barely sustain if the services sector doesn’t go hand in hand with it. An increase in the number of building permits represents a strong construction market whereas a decrease in permits implies a bearish trend for the New Zealand Dollar.
Trading NZDUSD around current level can be profitable at times. If the pair continued its journey towards bullish market it may also be favorite for trades wishing to open a long term position.