NZD: New Zealand Dollar was supported by the news from employment sector

The New Zealand Dollar grows up at the Forex currency market on Thursday the cause of optimism was suddenly evoked by the employment sector and the report on the unemployment rate for QI.

Forex forecast: MACD indicator is in the positive area for the pair NZD/USD however it started to decline, giving a pair sell signal. Stochastic Oscillator falls in the neutral zone today , approaching oversold zone and is giving a pair sell signal.

Forex recommendations: correction can enable the pair to go up to 0.7950/60, however if “bears” are back in the market, sales target will be the level of 0.7900.

It became known today that unemployment rate New Zealand fell to 6.6% in QI against the level of 6.8% in QIV, 2010. The forecast had been 6.7%.
In addition the proportion of labor force increased to 68.7% against the previous level of 67.9%.

Although indicators are favourable, ASB still believe that report is ambiguous: it is possible that the earthquake of February will have more serious impact on the economy than expected and it will have additional pressure on the labor market of New Zealand and will have an adverse affect on the prospects for the sector as a whole.

It became known on Tuesday that Monetary Authorities of New Zealand decided to expand program to  purchase assets up to NZD20 billion. The data released at the end of last week showed that trade surplus in New Zealand rose to NZD464 billion in March against the level of NZD194 billion in February. The level of trade surplus was substantially above the forecast of 200 billion, which is a positive indication for the economy. Export amounted to NZD4.53 billion last month against the forecast of 4.20 billion and imports totaled 4.07 billion versus to the expected 3.90 billion.
In addition, macro-statistics showed 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.

According to the decision of the Reserve Bank of Zealand, made at the meeting last Thursday, interest rate was left unchanged, at the level of 2.5% per annum. The head of the RBNZ Mr. Bollard stressed that interest rate is not supposed to be changed so far. Regulator pointed in the follow-up comments that high rate of the New Zealand Dollar is undesirable, since it has a negative impact on the economy. Macro-statistics released this week showed that construction permits in New Zealand rose by 2.2% m/m in March against preliminary forecast of decline by 9.7% m/m.

 

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