New Zealand dollar’s six-day streak of declines against the US dollar continued Friday. The two have had a rough start to February thus far. The pair continues to depreciate and is currently trading at 0.6530.

Yesterday, the Consumer Confidence Index (CCI) was issued with a new reading of 84.4, up from last month’s reading of 77.9.

Consumer confidence has a positive effect on the economy, while a negative one has a negative effect. The NZD is bullish if the reading is high, and bearish if it is low (or bearish).

Moreover Higher imports and a slowdown in inventory building were blamed for the unexpected decline in output, according to US Q1 GDP numbers released earlier that day.

Thursday’s GDP analysis found that the US economy shrank in Q1 2022, but the US currency continued to strengthen against other major currencies. Trade-weighted USD currency pairs comprise the US Dollar Index (DXY), which reached 2017 highs and was just a hair away from reaching 104.00, its highest level since December 2002.

Conclusion

The NZD/USD pair should not be traded at current levels because it is expected to continue declining through the end of the week.