With less than 0.7200, the New Zealand dollar (NZD) fell in value against the US dollar (USD). While the NZD has been steadily rising in value since the last two weeks.

Among the many factors that impact the price of the New Zealand dollar, Initial Jobless Claims may be one of the most important.

The US Department of Labor will release the figure of initial jobless claims soon. Economists have predictions that it might register a 335 K figure this month compared to the month before data of 355 K.

This indicator is the average of the last four weekly reports of initial jobless claims. The US Department of Labor publishes measures the number of persons making first-time state unemployment insurance claims. It indicates the labor market’s strength.

An upward trend in this figure implies market weakness, which affects the strength and direction of the US economy. In general, a downward trend should be a good or bullish sign for the USD.

Fortunately, the NZD/USD currency pair is moving upward and will reach the optimal level soon, and hence the small losses will not affect the price at all.

Conclusion

The technical bias might remain bullish for some time since the last upside price movement printed the higher high wave on the graph. Considering the overall technical and fundamental outlook, buying the pair on dips still appears to be a good strategy in the short to medium term.