The New Zealand Dollar (NZD) slid down against the US Dollar (USD) at the end of this week. The decrease in the value of the pair resulted after the Reserve Bank of New Zealand interest rate figure is released. According to this, no change was witnessed in the prevailing interest rate of the country. it just stayed the same this month as it was 1%, the month before.
The country’s rate of Reserve Bank is significantly affected by the prevailing rate of inflation, thereby weakening the economy and declining people’s spending trends. Lower interest rates, accompanied by excessive government spending, could, therefore, help the country’s economic situation and hold it to the optimum level.
On the other side, the country’s construction sector remained reasonably strong, but if the services sector did not go hand in hand with it, it would barely survive it. The increase in the number of building permits is a strong market for construction, while a decline in permits suggests a bearish trend for the New Zealand Dollar.
Trading NZDUSD can be attractive around the current level. If the pair continued their path to a bearish market, it may not be a preference of trades that wish to open up a long-term position.