NZD: New Zealand Dollar reached local highs again

At the Forex currency market the New Zealand rate continues to grow today, reaching the highs of 0.7885 once again.

Forex forecast: MACD indicator is in the positive area for the pair NZD/USD, it goes up and volumes are large which maintains a pair buy signal. Stochastic Oscillator remains in the overbought zone, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.7880 the pair will go to 0.7900 and 0.7930.

This morning the New Zealand statistics was mixed: index of houses prices REINZ increased by 0.5% in March against preliminary forecast of growth by 2.3%; while sale of houses reduced by 5.1% last month against preliminary level of -10.5%. In addition prices for food rose by 0.3% in March against preliminary target of 0.1%.

Earlier the country reported that trade surplus was positive for the first time in the last 8 months. High raw material prices which have been maintained in the world market became a catalyst for this, as well as the growth of export levels of timber and dry milk. Exports increased by 17% y/y in February; imports – by 23% y/y, to the level of 3.86 billion of NSD. Exports in New Zealand amounts to about 30% of the total GDP level and the increase in this article will have a positive impact on the national economy.

It became known yesterday that level of business confidence in New Zealand declined by 27% in QI, as per NIESR estimates against the level of +8 points in QIV.

Publications of the initial data for QI, 2011 started last week, which  in most cases was weak. The NZD is ignoring this statistics so far. The data of March has not been very impressive either: business confidence index NBNZ fell to -8.7 in New Zealand against 34.5 in the previous period. It is difficult to judge which factor has caused such rollback and it is worth waiting for the new data to be able to speak about one or another trend.
Therefore, the NZD is not particularly responsive to the mixed statistic, basing its growth on the support from high prices for raw products.

 

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