New Zealand Dollar Inches Lower Amid Business PMI Release

The New Zealand dollar (NZD) is down against the US dollar this morning. Following the dip in the business purchasing managers’ index (PMI), the price of the pair moves in the opposite direction of yesterday’s action, dropping below 0.6700. Because the price had a stronger low effect on the graph during the recent downside move, the technical bias could continue to bearish.

The pair’s value dropped soon before the release of the NZ business PMI. According to reported data, it was 53.7 in December, up from 50.6 the previous month, and also lower than experts’ estimates of 56.

The Business NZ PMI, produced by Business NZ, depicts the state of New Zealand’s economy. The PMI Market is a key indicator of the overall state of the economy. As a result, values above 50 signals value (or bullish) the NZD, and vice versa.

The price of the NZD/USD pair is being called for around 0.6724, with some resistance. The price may face first resistance while rising up near 0.6823, trend line resistance, which may keep the price close to said level.

NZDUSD

On January 20, 2022, the US Department of Labor released the initial jobless claims. This month, FXStreet.com recorded a total of 286,000, compared to 231,000 the month before.

The number of people filing first-time claims for state unemployment insurance is measured by Initial Jobless Claims. In other words, it serves as a barometer of labor market strength. A higher-than-expected number signals market weakness, which has an impact on the health and direction of the US economy.

Conclusion

The NZD/USD pair accentuates the bullish trend, making trading the pair at current levels unprofitable for both short and long positions.

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