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At the Forex currency market the New Zealand rate is growing moderately in the middle of the week; however activity in the pair is minimal; therefore growth can be attributed to the side effect of volatility.

Forex forecast: MACD indicator for the pair NZD/USD is in the negative area and continues sideways movement, not giving a clear signal. Stochastic Oscillator tends to go out of the overbought zone and is shaping a sell signal.

Forex recommendations: in case of breakdown at the level of 0.7725, the pair will go to ? ? 0.7710 and 0.7700.

Macro-economic situation in the economy of New Zealand remains unchanged, markets in the country were closed yesterday.

It became known earlier that GDP in New Zealand increased by 0.8% q/q in Q3 (+1.9% y/y) against the forecast of +0.6% on quarterly basis. Significant support to the economy of New Zealand was provided by Rugby Championship which attracted a lot of investments into the country. GDP rose by 0.1% q/q (+1.5% y/y) in Q2 against the level of +0.9% q/q (+1.6% y/y) in Q1. Thus, New Zealand economy is actually in the state of stagnation. GDP had almost stopped growing, however revived later. Most likely the index will be weaker in Q4.

Trade balance in New Zealand was at the level of –NZ$282 million in October against the level of NZ$784 million in September. The index remained in deficit last month although it was higher than forecasts of economists. Volumes of export increased by 5.3% (NZ$3.9 billion) on annual basis in October and imports rose by 8.9% y/y due to demand for industrial production. Consumer confidence index ANZ in New Zealand declined to 108.4 points in December against 109.0 points earlier.

According to the data released last week, business activity index in the service sector amounted to 56.6 points in November, as per BNZ estimates, against preliminary level of 51 points; thus the index has reached twenty-month highs now. The report also showed that new orders of companies and enterprises, as well as sales became a catalyst for activity. In addition, the rise in activity was recorded in the four major regions of the country for the first time this year.

Earlier it became known that there was an earthquake of 5.8 points in Christchurch, New Zealand. Severe damages have not been reported yet, however the NZD went down affected by the news.

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