NZD: New Zealand Dollar stands still in Friday

At the Forex currency market on Friday the New Zealand Dollar rate almost stands still because external background remains mixed at the end of the week.

Forex forecast: MACD indicator is in the negative area for the pair NZD/USD, however it tends to grow, giving ground for a buy signal. Stochastic Oscillator is coming out of the overbought zone and is giving a sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.8520, the pair will go to 0.8540 and 0.8560. If upward breakdown does not take place, the pair will consolidate close to the current levels.

Economic situation in New Zealand has not changed fundamentally at the end of the week. Investors’ interest to risk affects the interest rate of the NZD; however fragile stability at the trading floors, which has been observed this week, does not give grounds for the more significant purchases. It became known on Tuesday that permits to construct in New Zealand increased by 13.0% in July against the fall of 1.3% in June.

It is too early to speak about tendency in the indicator; nevertheless current results are quite good.

Last meeting of the Reserve Bank of New Zealand did not bring any surprises: it was decided to leave interest rate at the previous level of 2.5% per annum. In the follow-up comments the RBNZ said that monetary policy tightening which has been planned for the nearest future is aimed to duly curb the rise in prices in the country. As the head of the Bank, Mr. Bollard noted:”World financial risks have begun to fade out and economic growth continues to accelerate pace; therefore, there is no point to maintain the rate at the current low level any further.”

It became known earlier that retail sales in New Zealand increased by 0.9% q/q in Q2 against the forecast of growth by 0.7% on quarterly basis. According to the details given in the report the growth is attributed to the sale of motor spare parts, electrical goods and medicine.

According to the released data, consumer confidence ANZ in New Zealand increased to 114.4 points in August against preliminary level of 109.4 points. CPI in New Zealand rose by 1.0% q/q (+5.3% y/y) in Q2 against the forecast of growth by 0.8% on quarterly basis. It is one more positive characteristic of the economic status in New Zealand. It is worth noting that permits for construction in New Zealand fell by 1.4% m/m in June against the forecast of +3.0%.