The New Zealand Dollar (NZD) slips downside against the US Dollar (USD) for the last three days consecutively. The decrease in the value of the pair resulted just before the NZ business PMI release. According to the stats released in the previous month, it remained 51.3, October, as compared to 50.2, the month before, but it didn’t meet the economists’ expectations which were 53.1.
As far as the interest rate is concerned, 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.
After taking into account the recent price moves of the pair, trading it around the current levels may not be suitable for a short term position.