Forex Blog
Blog-FX.Com

At the Forex currency market the New Zealand rate remains under strong influence from external background on Thursday while investors' interest in risk isvery low

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 is going down in the neutral zone and is giving a sell signal.

Forex recommendations: in case of breakdownat the level of 0.7690, the pair will go to 0.7670 and 0.7650.

In terms of macro-statistics situation in New Zealand is stable.

Trade balance in New Zealand was -NZ$282million in October against NZ$784 million in September. The index remained in deficit last month although it was higher than forecasts of economists. Volume of exports 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 neworders with companies and enterprises, as well as sales became a catalyst foractivity. In addition, the rise in activity was recorded in the four major regions of the country for the first time this year.

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 investment 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.

Tags: