NZD: New Zealand Dollar is ready for technical correction

At the Forex currency market the New Zealand Dollar rate is aiming at technical rollback after nine consecutive sessions of growth and only a singular drop.

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

Forex recommendations: in case bullish market sentiment remains intact, buyers’ target will become the level of 0.7640. If the correction strengthens, the pair may go to the level of 0.7550, from which it will probably continue rising.

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.

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.

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