Forex Blog
Blog-FX.Com

At the Forex currency market the New Zealand Dollar rate continues to rise on Tuesday in spite of the premises of technical correction.

Forex forecast: MACD indicator is in the positive area for the pair NZD/USD and continues to rise, giving a pair buy signal. Stochastic Oscillator stays in the overbought zone, giving the same signal.

Forex recommendations: in case of bullish sentiments’ strengthening buyers’ target for today will be the level of 0.7720. If the level is not exceeded, the pair will start consolidation near the current levels.

As it became known today, the 1q level of NBNZ Business Confidence in New Zealand, according to NIESR, decreased by 27% against the 4q level of +8 points.

Thereby the first 1q data is being published, yet rather weak. Still kiwi ignores the statistics. March data is not impressive: the level of NBNZ business outlook in New Zealand declined to -8.7 points in March against the level of 34.5 points in February. It is difficult to judge on the reasons of such a rollback, and one should wait for the next data to judge on the trend.

Data released on trade balance last week turned out to be positive for the first time in 8 months. The main catalysts for this were high commodity prices and an increase in export levels of wood and dried milk.

Export levels increased by 17% y/y, import – by 23% y/y to the level of NZ$3.86 bln.

Export accounts for about 30% of NZ GDP and an increase in it will have a positive effect on the national economy.
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.

Tags: