The New Zealand Dollar (NZD) keeps elevating against the US Dollar (USD) since last week. The increase in the value of the pair is followed by the building permits released. According to this, it remained 13.2%, in May, as compared to -7.9%, the month before, simply up beating the economists’ expectation which was -0.5%. As far as the interest rate is concerned, 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.