This is where the New Zealand dollar reaches its break-even stage, continuing to rise in value against the US dollar. And it is currently hovering around 0.7218.
The one very important factor is the news regarding the upcoming Consumer Price Index.
Statistics New Zealand plans to release the Quarterly Consumer Price Index on January 21, 2021, which according to economists, it registered a reading of 1.4% in the first quarter while bearing no change compared to the quarter before.
The CPI calculates price movements by contrasting a representative shopping basket of products and services with retail prices. Inflation is pulling the purchasing power of the NZD down. To calculate inflation and shifts in buying patterns, the CPI is a key indicator. For the NZD, a high reading is positive (or bullish), while a low reading is negative.
There’s a more happy opportunity from America, this period about the forthcoming US initial jobless claims which could boost the pair’s forward momentum.
The US Department of Labor plans to the data of Initial Jobless Claims on April 22, 2021. According to economists prediction, it remained 617 K this month compared to the month before data of 576 K.
The number of people making first-time applications for state unemployment benefits is measured by initial jobless claims. A higher-than-expected number suggests market weakness, which affects the strength and course of the US economy. In general, a decreasing number is bullish or positive for the NZD/USD.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy in the short to medium term.