The NZD/USD pair was not an exception in the market tendency of the weakening of the dollar. The upward trend became more and more rapid in the last 30 days.
Disappointing economic statistics from New Zealand didn't change the situation in favor of the USD, even despite the rapid dip of the manufacturing PMI index in December to 51.2 points, which is the lowest level for the last five years. Inflation rose 1.6% in the fourth quarter of 2017, which did not match market expectations. Thus, there was a reason to expect a certain decreasing of the NZD value since the mentioned data were published. Nevertheless, this has not happened amid a weak dollar, the cost of which has reached a three-years' minimum, mainly because of political reasons.
This week the dollar strengthened slightly, following statements by Donald Trump, who at the world economic forum in Davos said he wants to see the dollar strong, and that the dollar will rise for sure. At the same time, the Minister of Finance declared the opposite position and U.S interest in a weak dollar, which largely shows political uncertainty in the United States.
In the near future the rates will be influenced by economic statistics while political factors will retreat gradually into the background. Today we expect new GDP data in the USA, which can lead to some strengthening of the USD. Next week is expected to be even more eventful for the currency market. We can expect important economic statistics from the United States, a speech by Donald Trump and a Federal Reserve meeting, which once again should present a decision about the interest rate. Investors, however, expect that the rate will not be revised this time, but any decision will affect the rates. The MACD and Stochastic oscillators show mixed signals. In this situation the best course would be the deals to SELL, which can be effective in the short and medium term.
