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The New Zealand Dollar rate is being corrected on Wednesday morning, following the trend of the major pair; there is a lull in the market that followed after the sharp surge of negative factors.

Forex forecast: MACD indicator for the pair NZD/USD has merged with the signal line and is not giving a clear signal. Stochastic Oscillator has reached oversold zone and is giving a sell signal.

Forex recommendations: in case of breakdown at the level of 0.8250, the pair will go to 0.8240 and 0.8200. The pair can also go to 0.8300, as part of technical correction.

New statistic is not going to be published so far; nevertheless the NZD has external ground for the trend, the currency continues to respond actively to the situation on the financial platforms, as illustrated by its dynamics.

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.

Last meeting of the Reserve Bank of New Zealand did not bring any surprises: it was decided to leave interest rate at the previous level of 2.5% per annum. In the follow-up comments the RBNZ said that monetary policy tightening which has been planned for the nearest future is aimed to duly curb the rise in prices in the country. As the head of the Bank, Mr. Bollard noted:”World financial risks have begun to fade out and economic growth continues to accelerate pace; therefore, there is no point to maintain the rate at the current low level any further.”

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.

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