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• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

NZD: New Zealand Dollar goes upward on Wednesday

At the Forex currency market the New Zealand Dollar rate continues to grow on Wednesday- the situation resembles the AUD/USD trading.
External background and stably high oil prices continue to support New Zealand currency. Worth remembering that market is thin and volatility is high at the moment.

Forex forecast: MACD indicator is in the negative area for the pair NZD/USD and is going up, which gives a pair buy signal. Stochastic Oscillator remains in the overbought zone.

Forex recommendations: if investors’ current bullish sentiments will prevail, buyers’ targets today will be the levels of 0.7620 and 0.7660.
Meanwhile, internal situation in the New Zealand economy has remained unchanged, markets were closed on Tuesday, therefore,  important macro-economic statistics was not published

We would remind that earlier Ministry of Finance brought down economic growth forecast for the current and the next fiscal years. In particular, estimate of GDP growth for the next fiscal year which starts on 1 June was brought down to 2.2% against the previous target level of 3.2%. In 2012 monetary politicians expect economic growth to 3.4%; however later, in 1015, economic growth in New Zealand will slow down again to - 2.7%
In addition, it is assumed that there is a budget deficit in the country, which is expected to increase from the current 14.1% of GDP to 28.5% of GDP by June 2015.

Interest rate of the Reserve Bank of New Zealand is now at the level of 3.0% per annum. Commenting the last RBNZ meeting the regulator noted that the rate of the monetary policy tightening is expected to be moderate in the next two years, since the earthquake which happened in the country recently (and which was the strongest over the last 80 years) had a significant impact on the state of the national economy.

According to the head of the RBNZ Mr. Bollard: “The most reasonable at the moment will be to keep rates low until the moment when economic recovery becomes steadier and inflationary pressures will start to demonstrate sings of consolidation. In the next two years interest rate will rise in a more moderate pace than it had been expected earlier”. 

 

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