Forex Analytics of LiteForex of 04.11.10: NZD: New Zealand Dollar is recovering, however no need to rush

At the Forex currency market on Wednesday the New Zealand Dollar rate is recovering from the previous fall.

Forex forecast: MACD indicator for the pair NZD/USD is moving along the signal line, not giving a clear signal. Stochastic Oscillator is giving a pair buy signal, being in the neutral zone.

Forex recommendations: in case of breakdown at the level of 0.7830 buyers’ targets will be the levels of   0.7870 and 0.7900.

The Reserve Bank of New Zealand stressed on Wednesday that strong NZD prevents the National economy from becoming more balanced and recent study shows that recovery rate of the domestic economy slows down.

In addition the regulator noted that the New Zealand banking system is in a good shape now while real estate sales have declined which could signal a new downfall in the sector.

The head of the NZNB Mr. Bollard emphasized today that the NZD growth can affect future prospects of the interest rate increase and the New Zealand Dollar rate is a bit overvalued, and for quite a long time.

Monetary politician also expressed his opinion that currency rates in a number of countries are in such state now that they prevent from eliminating unbalance at the currency market. According to him minimization of economic stimulation measures bears risks for the global economy. While the US FR decision to start a new stage of stimulation had a positive effect at the global capital markets, although it put pressure on the currency rates in the developing countries.

Note, that as it became known earlier unemployment rate in New Zealand declined to 6.4% in QIII against the previous level of 6.7% in QII; at the same time the change in the employment rate in QIII amounted to +1% against expectations of +0.5%.

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