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At the Forex currency market the New Zealand rate has declined on Monday following decrease in the interest to risky assets in the market. However, sales in the pair NZD/USD are not significant.

Forex forecast: MACD indicator for the pair NZD/USD is going up in the positive area and continues to go up and is giving a buy signal. Stochastic Oscillator tends to go out of the overbought zone and is giving a sell signal.

Forex recommendations: in case of breakdown at the level of 0.7925, the pair will go to 0.7920 and 0.7900. There is a high chance that a pair will consolidate at the current levels.

Last week was quiet in New Zealand in terms of macro-statistics. The rate of the NZD responded mostly to the external background and the fact that only few sellers have been left in the current situation, speaks about instability in the currency.

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 inQ4.

We would remind that New Zealand statistics is published far too behindhand.

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 new orders with 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.

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