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The New Zealand Dollar rate stands still at the Forex currency market amid stable external background – investors have adopted  “wait and see” position because information on the reduction of the budget deficit in Portugal shall be made public today, and this is one of the most problematic countries of Eurozone.

Forex forecast: MACD indicator is in the negative area for the pair NZD/USD and is moving along the signal line, not giving a signal. Stochastic Oscillator reverses today in the overbought zone, starting to form a pair sell signal.

Forex recommendations: if bears turn up for the pair, the NZD/USD will go to 0.7360 and 0.7320. If downward breakdown does not take place, the pair will consolidate close to the current levels.

Statistics of today showed that balance of current account in New Zealand decreased to -NZ$3.5 billion against the value of -NZ$1.77 billion in QIII. The balance is most likely decreased due to the seasonal factors and we surely can see improvement in the situation.

At the last meeting the Reserve Bank of New Zealand decided to decrease interest rate by 50 basis points, to the level of 2.50% per annum. Investors, who had predicted possible reduction of the indicator, ignored its decrease by 25 basis points.

It became the reason of the dramatic fall of the NZD, and what is more, Prime Minister John Key said earlier in his interview to Bloomberg News that he would have approved the decision of the Reserve Bank of New Zealand to reduce interest rate.
Note that basically the NZD is still quite weak, although technical chart shows that all conditions have been created for the rebound from the lows.

The main macro- statistics on New Zealand is scheduled for publication on 24 March: particularly, country’s GDP for QIV will become known and this data can significantly affect forces balance in the pair NZD/USD.

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