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At the Forex currency market on Thursday the New Zealand Dollar rate continues its descend, that has been accelerated after the rate decision of the Reserve Bank of New Zealand.

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 is moving in a similar way in the neutral zone and is giving a sell signal.

Forex recommendations: in case of breakdown at the level of 0.8140, the pair will go to 0.8130 and   0.8100.

Although the outcome of today’s meeting of the Reserve Bank of New Zealand was predictable, investors were upset. Thus, interest rate was left at the previous level of 2.50% as expected.   

The RBNZ noted in the comments that a pause in revision of the rate has lasted so long, due to poor economic prospects of the countries which are commercial partners of New Zealand. In particular, the Central Bank is concerned about the situation in the USA and in Europe as a whole. At the same time, previous high level of exchange rate of the AUD exerted pressure on the national economy. 

According to RBNZ it seems reasonable at the moment to leave the rate unchanged at the previous level so as to take into account risks of the global economy. 

In addition, it became known that purchasing manager index PMI BNZ in New Zealand fell to 52.9 points in August against the previous level of 53.2 points. The index had been declining for the third consecutive month which demonstrates slowdown in the sector.

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 decreased by 1.4% m/m in July against the forecast of +3.0% .

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