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At the Forex currency market the New Zealand Dollar rate continues to decline on Tuesday – on the one hand, investors have not decided on the sentiment of the week yet, on the other hand interest in the high yielding currencies has been decreasing after the rally in April.

Forex forecast: MACD indicator is in the positive area for the pair NZD/USD and is moving along the signal line due to high trading levels and is not giving a clear signal yet. Stochastic Oscillator started to go down in the neutral zone today forming a pair sell signal.

Forex recommendations: if bearish sentiments intensify at the market and in case of breakdown at the level of 0.8040, the pair will go to 0.8020 and 0.8000.

It became known today that Monetary Authorities of New Zealand decided to expand program to  purchase assets up to NZD20 billion. The data released at the end of last week showed that trade surplus in New Zealand rose to NZD464 billion in March against the level of NZD194 billion in February. The level of trade surplus was substantially above the forecast of 200 billion, which is a positive indication for the economy. Export amounted to NZD4.53 billion last month against the forecast of 4.20 billion and imports totaled 4.07 billion versus to the expected 3.90 billion.

In addition it also became known that level of business confidence in New Zealand declined by 27% in QI, as per NIESR estimates, against the level of +8 points in QIV.

According to the decision of the Reserve Bank of Zealand, made at the meeting last Thursday, interest rate was left unchanged, at the level of 2.5% per annum. The head of the RBNZ also stressed that interest rate is not supposed to be changed so far. Regulator pointed in the follow-up comments that high rate of the New Zealand Dollar is undesirable, since it has a negative impact on the economy. Statistics released earlier showed that inflation in New Zealand rose by 0.8% on quarterly basis (+4.5% y/y) in QI against the forecast of growth by 1.0% on quarterly basis. Therefore, CPI in the country turned out to be weaker than expected, which indicates that pace of economic recovery is slow.

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