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At the Forex currency market on Friday the New Zealand rate istraded slightly downward on Tuesday, remaining in the narrow trading channel.

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 remains in the over bought zone and maintains a buy signal.

Forex recommendations: in case of break down at the level of 0.7750, the pair will go to ? 0.7760 and 0.7770. There is a high chance that sellers will be back in the pair. 

Trading floors in New Zealand are closed due to holiday.

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

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 willbe 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. It became known last week that business activity index in the service sector amounted to56.6 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 acatalyst 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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