NZD: Nothing can prevent the rise of New Zealand Dollar

The New Zealand Dollar rate continues to grow at the Forex currency market on Wednesday; it has already managed to reach local peaks amid general good sentiment in the market. 

Forex forecast: MACD indicator is in the positive area for the pair NZD/USD and is going up due to high trading volumes, giving a pair buy signal. Stochastic Oscillator continues to stay in the overbought zone today, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.8100 the pair will retest the level of 0.8111 again and will go to 0.8125.
The situation in the New Zealand economy has not changed fundamentally.

Statistics released earlier 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 -10.5%. In addition prices for food increased by 0.3% in March against the 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.

In addition it also became known 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.

Statistics released earlier showed that inflation in New Zealand rose by 0.8% on quarterly basis (+4.5% y/y) in QI against the forecast of growth by 1.0% on quarterly basis. Therefore, CPI in the country turned out to be weaker than expected, which indicates that pace of economic recovery is slow. 

 

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