After the release of US Michigan Consumer Sentiment Index data, the New Zealand dollar (NZD) dropped against the US dollar (USD) on Friday, following a dramatic rise over the previous two days, bringing the NZD/USD price to less than 0.7000.
On Friday, the University of Michigan (US) published figures regarding the news of the US Michigan Consumer Sentiment Index. According to the opinion of economists, in July, the US Michigan Consumer Price Index news reported a reading of 80.8, compared to the reading of 80.8, in the previous month. Today’s data beat both records and remained at 81.2.
The US Michigan Consumer Sentiment Index statistics represent the confidence levels of customers in the country.
The US Michigan Consumer Price Index is an important economic indicator as it indicates whether or not consumers are willing to spend money in the coming days. Generally speaking, the high reading is seen as positive for the US dollar (USD), suggesting a bearish market for the NZD/USD currency pair ahead and vice versa.
As of this writing, the NZD/USD pair hovers around 0.6969, with immediate two support levels seen ahead. The NZD/USD pair might find some support near the listed below price tag.
Moreover, Statistics New Zealand published the Building Permits data of June with an improved figure of 3.8% compared to the month before reading of -2.4%.
Building Permits is a housing market indicator that is ahead of the trend. The more licenses issued, the more favorable (or bullish) the NZD/USD pair becomes.
Considering the overall price movement of the pair in the recent few days, selling the NZD/USD currency pair around current levels might be a sensible trading move in the short to medium term.