The rates continue in the frames of a downward trend. By analogy with the EUR/USD both currencies are under pressure due to political uncertainty. This is especially true about the USA, where Donald Trump does not have sufficient support to implement his promised reforms, in particular tax reform, whose prospects are not clear. However, the USD against the NZD feels more than confident, thanks to optimal economic indicators and perspectives of a rate hike in December.
The NZD is losing positions versus most currencies. In addition to political uncertainties negatively affecting the NZD, there is also the RBNZ's decision to leave interest rates unchanged. Economic indicators also do not impress investors and are below the forecasted levels. The NZD also was unable to find support based on the situation in neighboring Australia, where the AUD value is also decreasing after the release of a protocol from the RBA. Thus, the New Zealand dollar fell to the level of June 2016.
This week market volatility is low and will drop to the end of the week due to the Thanksgiving Day celebration in the United States. At the same time, this week important data is expected about trade balance in New Zealand, as well as retail sales for the third quarter. Therefore, the NZD has a very good chance for strengthening in the absence of any news from the US. The MACD oscillator confirms the efficiency of transactions for the deals to BUY in the medium term. Reaching the minimum since June 2016, the NZD is able to find stimulus for some strengthening, but at the moment only in the frames of the current downtrend.
