During the past week, the New Zealand dollar (NZD) gained against the United States dollar (USD). Today’s NZD/USD pair could rise as a result of the RBNZ’s imminent interest rate decision.
Reserve Bank of New Zealand will release the Interest rate on November 24, 2021 (Wednesday). Economists predict that RNZ interest rate movie might remain 0.75% this month relative to the previous month’s data of 0.5%.
The hawkish attitude of the New Zealand Reserve bank towards inflationary outlooks yields higher interest rates in the country and, therefore, the market trend becomes bullish for the pair.
Going through other releases, that might not support the NZD/USD pair. First, the US Department of Labor will release the initial jobless claims on November 24, 2021. Economists predict that it might fall from 268 K to 260 K this month.
Initial jobless claims are a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it serves as a barometer of labor market strength. A higher-than-expected number signals market weakness, which has an impact on the health and direction of the US economy. In general, a lowering figure is considered positive or bullish for the USD.
The NZD/USD pair is currently updating itself at 0.7005. The variety of support levels at this stage is beneficial for the NZD/USD currency pair.
Conclusion
Selling it around current levels could be reasonable for a short-term position after taking into account the recent price movements of the pair.