The rates continue within the downtrend, and multi-year lows have already been reached. The dollar strengthened in the absence of any competitors for itself, against the background of the Fed's aggressive monetary policy. Investors received more and more signals about the Fed's plan to raise the rate as much as necessary. The New Zealand dollar had nothing to oppose in these conditions. Of course, the RBNZ also raises the interest rate but the commodity currency is now the most unclaimed asset among investors who prefer either the safe yen and the franc, or the highly profitable USD.
As for the macroeconomic reports, they were multidirectional but generally assessed negatively. First of all, investors are concerned about the decline in business activity in the United States, which is only 44 pip and worse than expected. The trade deficit is also higher than forecast. Thus, we can say that the US economy is already in recession. As a result, we observe the growth of the USD paused against most currencies; consolidation begins.
Next week, volatility may increase. The focus of investors' attention will be macroeconomic reports on inflation in the US, as well as GDP in New Zealand in the 2nd quarter. The Philadelphia Fed's manufacturing activity index is also being published, which is expected to confirm fears of a recession in the US economy. On the chart, we see all the signs of the beginning of a price correction. It's time to go back to Purchases and open the deals at the lowest price. Most of the technical analysis indicators also change towards purchases, and now we can see a strong Buy signal for the medium-term trades.
