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At the Forex currency market the New Zealand Dollar rate continues to grow on Thursday.

Forex forecast: MACD indicator is in the positive area for the pair NZD/USD, and is going up, giving a buy signal; volumes are high.  Stochastic Oscillator remains in the overbought zone, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.8750, the pair will go to 0.8765 and 0.8780.

The pair could drop to 0.8600 as part of correction.At the meeting which was held today, the Reserve bank of New Zealand 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 is planned for the nearest future to duly curb the growth of 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 sense to maintain the rate at the current low level any further.”Latest statistics was in general favourable.

Thus, index of business confidence in New Zealand increased to 47.6 points, as per NBNZ estimates, against the level of 46.5 points in May. Index of inflationary expectations fell to 3.15% (previously: 3.20%) and indicator of prospects with the account of activity increased to 43.7 points last month (38.7 points earlier). Business sentiment NZIER in New Zealand rose to 27 points in Q2 against -27 points earlier. In general, it is a positive factor.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. It is one more positive characteristic of the economic status in New Zealand.

According to statistics released on Tuesday, trade balance in New Zealand increased by NZ$230 billion in June against the forecast of NZ$400 billion. Slowdown in surplus was logical in June: volume of growth rate in imports and exports fell last month. Thus exports increased by 4.5% in Q2, to NZ$12.2 billion; imports dropped by 1%, to the level of NZ$11.8 billion.Exports to China and Australia fell sequentially: to +1.3% y/y (+24.2% y/y earlier) and 1.2% y/y (+4.7% y/y earlier) respectively.

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