At 0.7204, the New Zealand dollar gained a green candle tag on the graph today against the US dollar. Although it has recovered from a precipitous plunge in recent days, it has yet to entirely recover. This rise, however, will not be enough to compensate for the previous days’ decline.
Nonetheless, this increase highlights the belief that the pair’s price will overcome the challenges of adverse circumstances and will be able to resolve them over time.
A significant part of this success is the upcoming news of Gross Domestic Product (GDP).
On June 17, 2021, Statistics New Zealand will release the GDP figure. According to economists’ prediction, it would increase its percentage from -0.9% to 0.5% in the first quarter of this year.
The GDP measures New Zealand’s total value of all products and services generated. The GDP is a broad indicator of economic activity and health in New Zealand. In general, a high reading for the NZD is favorable (or bullish).
According to the graph above, two immediate support levels keep it from falling and try to drive NZD/USD forward.
Given the pair’s micro-macro-economic outlook over the last few days, selling the NZD/USD pair could result in more gains in short to medium-term trading.