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At the Forex currency market the New Zealand Dollar rate continues to rise today, reaching local highs once again.

Forex forecast: MACD indicator is in the positive area for the pair NZD/USD and is growing, giving a pair buy signal. Stochastic Oscillator remains in the oversold zone today, giving a pair buy signal. 

Forex recommendations: in case of breakdown at the level of 0.7960 the pair will go to 0.7990. If a breakdown does not take place the pair will consolidate close to the current levels.

It became known yesterday that the index of industrial activity PMI in New Zealand declined to 50.1 points in February against the level of 53.2 points in February. Statistics has not affected the positions of the NZD.

Statistics released earlier this week was mixed: index of houses prices REINZ increased by 0.5% in March against preliminary forecast of growth by 2.3%; while sale of houses reduced by 5.1% last month against preliminary level of -10.5%. In addition prices for food rose by 0.3% in March against preliminary target of -10.5%. In addition prices for food increased by 0.3% in March against the preliminary target of 0.1%. Earlier the country reported that trade surplus was positive for the first time in the last 8 months. High raw material prices which have been maintained in the world market became a catalyst for this, as well as the growth of export levels of timber and dry milk. Exports increased by 17% y/y in February; imports – by 23% y/y, to the level of 3.86 billion of NSD. Exports in New Zealand amounts to about 30% of the total GDP level and the increase in this article will have a positive impact on the national economy.

In addition it also became known that the level of business confidence in New Zealand declined by 27% in QI, as per NIESR estimates against the level of +8 points in QIV.

The data of March has not been very impressive either: business confidence index NBNZ fell to -8.7 in New Zealand against 34.5 in the previous period. It is difficult to judge which factor has caused such rollback and it is worth waiting for the new data to be able to speak about one or another trend.

There is a strong speculative component in the pair NZD/USD at the moment which makes it possible for the NZD not to respond to the fundamental aspects.

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