NZD: New Zealand Dollar continues to recover steadily

The New Zealand Dollar continues to grow steadily at the Forex currency market on Tuesday, regaining from the losses of positions earlier.
Forex forecast: MACD indicator is in the negative area for the pair NZD/USD, however it started to rise, giving a chance for the pair buy signal. Stochastic Oscillator is coming into the overbought zone today, maintaining a pair buy signal.

Forex recommendations: if positive sentiments are maintained in the market, buyers’ targets will become the levels of 0.7250 and 0.7290/7300.

The situation in the economy of New Zealand has not changed dramatically today. We would remind that previous sales of the NZD were caused by the view of the country’s Prime Minister John Key, who said in his interview to Bloomberg News that he would have approved the decision of the Reserve Bank of New Zealand to reduce interest rate from the current 3%; %. Investors interpreted his opinion as a call to action and pressed the pair down to the local lows. The politician does not rule out that effect of the earthquake in the South of New Zealand in February can cause the rollback of the national economy into the state of recession.

It is logical that at the last meeting the Reserve Bank of New Zealand decided to decrease interest rate by 50 basis points, to the level of 2.50% per annum. Investors, who had predicted possible reduction of the indicator, ignored its decrease by 25 basis points.
Note that basically the NZD is still quite weak, although technical chart shows that all conditions have been created for the rebound from the lows.

The main macro- statistics on New Zealand is scheduled for publication on 24 March: country’s GDP for QIV will become known- this data can significantly affect forces balance in the pair NZD/USD.

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