Since yesterday, when it struck the 0.6225 zone, which also served as support on May 12th and 13th, the NZD/USD currency pair has been recovering. The rate, however, remains below the downside resistance line drawn from the high on April 5th, and hence the short-term picture remains gloomy.

We understood by then, as we concentrated our attention on New Zealand dispatches, that it contained the kind of news that would prevent the US from strengthening the dollar, resulting in a rise in NZD income. However, we recently identified one US update that has caused the New Zealand dollar to decline.

The US Census Bureau will release the Building Permits on Wednesday (May 18, 2022). Experts believe that it reached 1.812 million people in April, up from 1.87 million the previous month.

Building Permits are the number of approvals for new construction projects. It entails transferring business assets (US economic development). It contributes to the USD’s volatility. The more permits issued, the more optimistic (or bullish) the USD, but this hurts the NZD/USD currency combination.

Conclusion

After data from the US indicated that Retail Sales rose faster than predicted in April, the NZD/USD has retreated somewhat from its two-day high of 161.00 established in the early American session. Nonetheless, as investors await the Budget Release on May 19, 2022, the pair maintains robust daily advances.