NZD: New Zealand Dollar consolidates near local highs

At the Forex currency market the New Zealand Dollar rate is traded calmly, consolidating near local highs at the end of the week.

Forex forecast: MACD indicator is in the negative area for the pair NZD/USD and continues to rise steadily as the day before, giving a pair buy signal. Stochastic Oscillator stays in the overbought zone, giving the same signal.

Forex recommendations: in case of breakup at the level of 0.7630 the pair will go to 0.7690. If the level is not exceeded, the pair will end the week in consolidation near current levels.

Today the situation in the New Zealand economy remains unchanged.

Statistics released earlier showed that GDP in New Zealand rose by 0.2% m/m (+0.8% y/y) in QIV against the forecast of growth by 0.1% m/m, which support positive dynamics in NZD.

Besides, balance of current account in New Zealand decreased to -NZ$3.5 billion against the value of -NZ$1.77 billion in QIII. The balance is most likely decreased due to the seasonal factors and we surely can see improvement in the situation.
In the current situation it is obvious that speculative sentiment in the NZD/USD is growing, so the possibility of forthcoming correction can’t be ruled out because fundamentals for growth are fuzzy.

As it became known on Thursday, the level of NBNZ business outlook in New Zealand declined to -8.7 points in March against the level of 34.5 points in February. As it became known the day before, trade balance in New Zealand increased to NZ$194 mln in February against the level of NZ$11 mln in January and forecast of growth to NZ$272 mln. In addition export levels increased by 17% y/y, import – by 23% y/y.

Thereby the released statistics is mixed – in this light full-fledged March data will be of interest.

 

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