The New Zealand Dollar (NZD) to continue sliding down against the US Dollar (USD) for the last month. The decrease in the value occurred just after the economic release concerning RBNZ interest rate decision is broked. According to this, it remained 1.00% in August, as compared to 1.50% the month before, down beating the economist expectations which was 1.25%.
RBNZ Interest Rate Decision is announced by the Reserve Bank of New Zealand. If the RBNZ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the NZD.
Also, the 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).
Similarly, 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.