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At the Forex currency market in the middle of the week, the New Zealand Dollar rate is getting weaker following the trend of the major currency pairs, due to reluctance of traders to take risk, while prospects remain rather vague.

Forex forecast: MACD indicator for the pair NZD/USD gradually breaks through the signal line from top to bottom, giving a sell signal.  Stochastic Oscillator goes up slightly in the neutral zone and is giving a buy signal, shifting smoothly into the movement along the signal line.

Forex recommendations: in case of breakdown at the level of 0.8150, the pair will go to 0.8130 and 0.8110.

Exchange rate of the New Zealand Dollar weakens, similar to most high-risky currencies, because current situation at the currency market does not help encourage risk.

A meeting of the Reserve Bank of New Zealand will be held tomorrow. It will be devoted to the interest rate and interesting comments on the current environment can be made during the meeting. Most likely the rate will be left unchanged, as deceleration in the global economy is obvious, which has its impact on the situation in every country.

The data released earlier showed that activity in the construction sector of Australia was at the level of - 6.6 q/q in Q2, which agreed with the revised data in Q1. The NZD did not respond to the data too much. 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.

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.

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