NZD: New Zealand Dollar continues to grow steadily

The New Zealand Dollar rate is traded upward at the Forex currency market on Tuesday, keeping up the growing trend of the week.

Forex forecast: MACD indicator is in the positive area for the pair NZD/USD and continues to go up, giving a pair buy signal. Stochastic oscillator reversed from the overbought zone and tries to go upward, giving a pair buy signal.

Forex recommendations: if current sentiment will be maintained in the market, buyers’ targets will be the level of 0.7750 and 0.7810

The following New Zealand data was released today:

– Houses prices in January: -1.5% y/y against -0.9% y/y in December.

In addition, the data on the business confidence NAB for January was also released: the index demonstrated growth rate to 4 points against the decline by 3 points in December. Index of business conditions reduced to 6 points in the first month of the year against the previous value of 6.

Statistics published before that had been pessimistic: it became known last week that unemployment rate in New Zealand rose to 6.8% in QIV, 2010 against the previous level of 6.4% in QIII while economists expected the growth of 6.5%. At the same time employment rate of the population in New Zealand fell by 0.5% in QIV (-11 thousand jobs) against the forecast of growth by 0.2%.

The meeting of the Reserve Bank of New Zealand which was held at the end of January, made an expected decision to keep interest rate at the previous level of 3.0% per annum. In the follow-up comments, the head of the RBNZ, Bollard stressed that the rates will be sequentially increased over the next two years. However, the regulator will keep the rate at the low levels until the situation in the economy regains confidence and the recovery process becomes stable. As for the internal economy of New Zealand, economic activity in the second half of 2010 turned out weaker than the forecast and the reduction of spending in the retail sector in QIV is not ruled out.

 
 

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