The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Monday with a price increased to more than 0.6100 following the release of a unemployment rate. The Pair did well this week marking four bullish and one bearish candle it somehow managed to keep the technical bias stay bullish.
The release of employment rate by the Statistics New Zealand aided it further as there was an improvement in it as compared to the figure released the last month. However, it turned out to be a little lower than that of expected by the economists. Keeping in view the price movement of the pair over the past few days, it may be concluded that the technical bias may remain bullish.
However, it is to be noted that the unemployment figure provides in depth details concerning the condition of the job market in the country. Generally speaking, if the figure tend to rise, it indicates an up rise for the country’s economy so as for the New Zealand Dollar (NZD) whereas the decreasing number suggests a bearish market ahead.
On the other hand, RBNZ interest rates are yet to be announced. It is anticipated that there will be no change in the interest rates which is something probable for the NZD Dollar. It is said that if RBNZ remains hawkish towards inflationary outlook, the pair’s price tend to rise and vice versa.
After considering the price behavior of the pair over the last few weeks, trading the pair around current level for both short term and long term positions may be a good idea to start with.