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The New Zealand Dollar rate almost stands still at the Forex currency market on Thursday, waiting for the external catalysts; which are going to be more than plenty at today’s session.

Forex forecast: MACD indicator for the pair NZD/USD has merged with the signal line and is not giving a clear signal. Stochastic Oscillator has reached oversold zone and is giving a sell signal.

Forex recommendations: in case of breakdown at the level of 0.8300, the pair will go to 0.8280 and 0.8250.

According to the data released today activity in the construction sector of New Zealand was at the level of  -6.6% q/q which agreed with the revised index in Q1.

The NZD did not respond to the data too much.

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. This was another positive feature in the outline of New Zealand economy. It is worth noting that number of 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.

As it was made public earlier, 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.

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.”

A speech of the U.S. President Barack Obama before Congress is scheduled for tonight; therefore volatility in the pairs with the USD can increase significantly.

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