Amid the release of monthly budget statement results, the New Zealand dollar (NZD) fell against the US dollar (USD) on Tuesday, decreasing the price of the NZD/USD currency pair pair to more than 0.7100.

The monthly budget statement from Financial Management Service was released yesterday. FXStreet.com reported the monthly budget statement index at $-171B in August, above the economists’ expectation of $-173B. 

The monthly budge statement highlights federal entities’, disbursing officers, and Federal Reserve banks’ financial activity. A positive budget statement indicating that receipts surpass budgetary outlays is optimistic for the dollar.

As of this writing, the NZD/USD currency pair floats around 0.7109. While dropping down, the price of the NZD/USD pair is likely to find some support levels that might help the price stay above the listed price spot.

And Statistics New Zealand will release the gross domestic product on September 15, 2021. Economists predict that GDP might remain at 16.3% in the second quarter compared to the quarter before the index.

The gross domestic product (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 rising trend is favorable (or bullish) for the New Zealand dollar, whereas a falling trend is negative (or bearish).

Conclusion

The technical bias might remain bullish due to the higher high lift in the last upside price movement of the NZD/USD currency pair. Hence, the buying strategy would support the short to medium traders.