Forex Blog
Blog-FX.Com

At the Forex currency market the New Zealand Dollar rate continues to grow on Friday.

Forex forecast: MACD indicator is in the negative area for the pair NZD/USD and continued to rise, indicating a reversal trend. Stochastic Oscillator remains in the overbought zone today.

Forex recommendations: if current sentiments maintain in the market and in case of breakdown at the level of 0.7525 the pair will go to 0.7550 and 0.7570.

Statistics released yesterday showed that GDP in New Zealand rose by 0.2% m/m (+0.8% y/y) in QIV against the forecast of growth  by 0.1% m/m, which support positive dynamics in NZD.

Statistics of this week showed that balance of current account in New Zealand decreased to -NZ$3.5 billion against the value of -NZ$1.77 billion in QIII. The balance is most likely decreased due to the seasonal factors and we surely can see improvement in the situation.

At the last meeting the Reserve Bank of New Zealand decided to decrease interest rate by 50 basis points, to the level of 2.50% per annum. Investors, who had predicted possible reduction of the indicator, ignored its decrease by 25 basis points.

It became the reason of the dramatic fall of the NZD, and what is more, Prime Minister John Key said earlier in his interview to Bloomberg News that he would have approved the decision of the Reserve Bank of New Zealand to reduce interest rate.

This week the New Zealand Dollar has regained almost completely from the reduction which followed the decision of the RBNZ
Further dynamics of the pair NZD/USD will depend on the external background.

Tags: