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Trades for the New Zealand Dollar rate are mixed the Forex currency market in the middle of the week; there is activity in the currency, however definite direction of movement is not there. Investors are waiting for the outcome of the U.S. Federal Reserve meeting and they will start to create a medium term channel on the basis on new information.

Forex forecast: MACD indicator for the pair NZD/USD is in the negative area and goes down, giving a sell signal.  Stochastic Oscillator is also going down in the neutral zone and is giving a sell signal.

recommendations: in case of breakdown at the level of 0.8200, the pair will go to 0.8175 and 0.8150.

According to the released data current account balance in New Zealand amounted to –NZ$2.0 billion in Q2 against preliminary estimate of –NZ$1.5% billion. It is obvious that economy of the country suffers from the global decline in demand – New Zealand is the country which is focused on exports and supplies dairy products vegetables, wool, therefore much less money will come to the state treasury.According to statistics released yesterday activity index on the service sector of New Zealand fell by 0.6 points in August, to the level of 53.9 points.

At the same time, consumer confidence Westpac in New Zealand remained at the level of 112.0 points in Q3 versus similar level in Q2. It is the latest data that keeps the NZD afloat, showing that consumers believe in the best. According to the released data, consumer confidence ANZ in New Zealand increased to 114.4 points in August against preliminary level of 109.4 points. 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.

This was another positive feature in the outline of New Zealand economy. It is worth noting that number of permits to construct in New Zealand decreased by 1.4% m/m in July against the forecast of +3.0%. Activity in the construction sector of Australia was at the level of - 6.6 q/q in Q2,  which agreed with the revised data in Q1.

As it became known earlier, consumer confidence index ANZ in New Zealand fell to 112.6 points in September against the level of 113.3 points in August. It is clear that macro-economy does not provide any support to the NZD. In addition, it became known that purchasing manager index PMI BNZ in New Zealand fell to 52.9 points in August against the previous level of 53.2 points. The index had been declining for the third consecutive month which demonstrates slowdown in the sector.

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