NZD: NewZealand Dollar has raised highs once again

At the Forex currency market,the New Zealand Dollar rate continues to grow on Friday, after reachingmany-week highs yesterday.

Forex forecast: MACD indicatoris in the positive area for the pair NZD/USD, and is going up, giving a buysignal. Stochastic Oscillator has come into the overbought zone, and is goingdown, giving a buy signal.

Forex recommendations: in caseof breakdown at the level of 0.8340, the pair will rise to 0.8350 and0.8370.

Profit taking in the longposition could lead the pair away to 0.8270.

The data released earliershowed that net level of budget deficit in New Zealand rose to -NZD$40 billion(20.4% billion of the country’s GDP) in May, which was beloweconomists’ forecast. According to the estimates of the Finance MinisterMr. English, budget deficit is still too large and active measures are requiredto reduce it.

The report on New Zealand GDP,scheduled for the release this week, was postponed until 14 July- the Bureau ofStatistics said that more time is needed to review the indicators.

Negative factor for the NewZealand Dollar was created by Nature yesterday: earthquake of magnitude 7.9points have been recorded in the north-east of New Zealand this morning. Theepicenter was located near the Islands of Kermadek and Tonga, at the depth of48 km.

However, market has recoveredfrom the news quickly and reverted to purchase of the NZD.

It became known earlier thatbusiness sentiment NZIER in New Zealand rose to 27 points in Q2 against -27points earlier. In general, it is a positive factor.

Trade balance in New Zealandwas at the level of NZD$605 billion in May against the forecast of NZD$1000billion. This is a negative data, because decline in the trade balance will indicatedecline in the level of exports later, which will be the impact of cooling inChinese economy.

Earlier, the Reserve Bank ofNew Zealand decided to keep interest rate unchanged at the minimum of 2.50% perannum, since it is going to continue its work on improvement in economicsystem. According to the head of the RBNZ, NZD has been overvalued because ofhigh export prices for raw materials, therefore, national currency rate, whichhas increased over the last two months, has adverse impact on the rebalancingof the economy in New Zealand. Bollard expressed confidence that decline of theNZD will be gradual because currency intervention will not be able to changethe trend.