The NZ currency today flashed a red candle on the graph after a three-day rally against the US dollar following the release of Statistics New Zealand’s construction permits statement on January 13 2022.

Building permits increased by 0.6 per cent in November, according to FXStreet.com, compared to -2.1 per cent the month before.

The Building Permits s.a. chart shows the number of permits issued for new building projects. It’s a leading indicator for the housing market. As the number of licences grows, the NZD becomes more positive (or bullish), but a low reading is bad (or bearish).

The NZD/USD pair is now trading at 0.6811 as of this writing. As illustrated in the chart below, two converging support levels provide the opportunity for the price to go forward.

In contrast, according to the article, the US Department of Labor revealed the number of first unemployment claims in January, which was 230,000, up from the experts’ projection of 200 thousand and the previous month’s total of 207,000.

It serves as a barometer for the state of the job market. A figure that is lower than predicted shows that the market is strengthening, which has an impact on the health and direction of the US economy, but it also implies a negative market for the NZD/USD pair.

Conclusion

The NZD/USD pair is approaching resistance levels that may prevent the pair from moving forward, therefore postponing investment may be a prudent move for short-medium trade.