The New Zealand dollar was no exception, and amid strengthened USD, it continues to lose its positions. At the same time, NZD is already trading at the most minimal levels. There were periods when kiwi cost even less, but this did not last long. It is possible that this currency has yet to test absolute lows in the future. One way or another, but the decline continues this month.
This week the USD received support again due to good employment reports, a trade deficit below forecasts and hawkish comments from the head of the Fed regarding further growth of the rate. The New Zealand dollar, in turn, came under pressure, as China sees low inflation, a sharp reduction in imports by 10% in February at once, which could negatively affect exports in New Zealand and the demand for risky assets as a whole.
Volatility will increase significantly for NZD/USD next week. There are many macroeconomic reports, including inflation in the US, industrial production output, business activity index, and in New Zealand - we are waiting for the quarterly GDP report. Also in China will be known the volume of industrial production and the unemployment rate. Most technical analysis tools signal the need to sell. We approve this signal and also believe that the deals to SELL should be the most effective in the near future.
