(15/03) NZD/USD Analysis and Forecast

Gross Domestic Profit (#GDP) YoY reported at 2.9%, slipping below the 3.1% consensus. 

NZD/USD slipped from just over 0.733 to below 0.731 

 

Analysis

 After a strong start to March for the Forex pair in question, the news was released regarding the annual reports of Gross Domestic Profit. Although there was a rise from the previous 2.7% figure, it had slipped short of the strong prediction of 3.1%, which encouraged selling as investors lost confidence in the Forex pair. 

After ranging between 0.732 and 0.745 for a few hours, it is significantly evident that the foundations of the economy are gradually building as there was a rise in the GDP however, it seems to be growing at a pace that is slower than acceptable. The RBNZ (Reserve Bank of New Zealand) also is now under pressure as fingers are being pointed towards the central bank to explain the slow growth.  

Forecast

With many technical indicators suggesting that this news now changes the shape of the short-term future for the currency pair, it may also be an indication as to why there has been an influx of selling, which may be through a lack of confidence from investors. As growth does seem inevitable, it is possible that the long-term expectation is positive and the upward trend continues.

Disclaimer: The forecast above is of my opinion and should not be used as a firm indicator to act on the market, but as an insight and thorough analysis of the general movement and trend of the currency pair discussed above. 

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