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Atthe Forex currency market the New Zealand rate is traded upward due to stabilityin the external background, enabling investors to show interest to risk in thefirst week of the new year.

Forexforecast: MACD indicator for the pair NZD/USD is in the negative area andcontinues to go up, ready to break through the signal line from bottom to top.Stochastic Oscillator goes up in the overbought zone and is giving a buysignal.

Forex recommendations: in case of breakdownat the level of 0.7900, the pair will go to 0.7920 and 0.7940. 

Macro-economic situation in New Zealand isstable. Markets in the country were closed on Tuesday, statistical calendarwill be uneventful this week; therefore, external background and sentiment inthe market will be the main drivers for the NZD. 

According to the data released last week,business activity index in the service sector amounted to 56.6 points inNovember, as per BNZ estimates, against preliminary level of 51 points; thusthe 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 majorregions of the country for the first time this year.

It became known earlier that GDP in NewZealand 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 wasprovided by Rugby Championship which attracted a lot of investment into thecountry. 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 stoppedgrowing, however revived later. Most likely the index will be weaker in Q4.

Trade balance in New Zealand was–NZ$282million in October against NZ$784 million in September. The index remained indeficit last month although it was higher than forecasts of economists. Volumeof exports increased by 5.3% (NZ$3.9 billion) on annual basis in October andimports rose by 8.9% y/y due to demand for industrial production. Consumerconfidence index ANZ in New Zealand declined to 108.4 points in Decemberagainst 109.0 points earlier. 

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