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At the Forex currency market the New Zealand Dollar rate stands still on Tuesday, evaluating external background after reaching the highs of 0.8844 yesterday.

Forex forecast: MACD indicator is in the positive area for the pair NZD/USD, and is going up, giving a buy signal; volumes are high.  Stochastic Oscillator tends to come out of the overbought zone, and started to shape a sell signal.

Forex recommendations: in case of breakdown at the level of 0.8760, the pair will go to 0.8740 and 0.8700.

However of downward breakdown does not take place, the pair will keep the target at 0.8850.Macro-economic situation in New Zealand has not changed much.According to statistics released this week, trade balance in New Zealand increased by NZ$230 billion in June against the forecast of NZ$400 billion. Slowdown in surplus was logical in June: volume of growth rate in imports and exports fell last month.

Thus exports increased by 4.5% in Q2, to NZ$12.2 billion; imports dropped by 1%, to the level of NZ$11.8 billion. Exports to China and Australia fell sequentially: to +1.3% y/y (+24.2% y/y earlier) and 1.2% y/y (+4.7% y/y earlier) respectively.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.

At the meeting which was held yesterday, the Reserve bank of New Zealand 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 is planned for the nearest future to duly curb the growth of 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 sense to maintain the rate at the current low level any further.”Worth noting that permits for construction in New Zealand fell by 1.4% m/m in June against the forecast of +3.0%.   

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