According to the U.S. Geological Survey (USGS), on July 7 at 7:30am local time the Kermadec Islands of New Zealand were hit by another earthquake measuring 7.8 in magnitude. A tsunami warning was issued right after the earthquake.
The local police examined the coast and informed people of the threat of possible tsunami. However the height of waves didn’t exceed half a meter even though the experts had expected 2 or 3-meter waves to hit the coast.
The official site of the New Zealand Ministry of Civil Defence http://www.civildefence.govt.nz/ says:
“A tsunami was confirmed from the earthquake in the Kermadec Islands. Advice from GNS Science is that the tsunami does not represent a threat to New Zealand.
However, they expect that there will be unusually strong tidal surges and currents.
For the next 24 hours people should exercise caution and discretion before entering the water or going out in small boats in all parts of New Zealand”.
It should be noted that numerous earthquakes keep damaging the country’s economy and infrastructure. Consequently, in the near future the investments in New Zealand (especially its housing market and construction sector) may be reduced, as it was seen in Japan after a series of disasters (including earthquakes, tsunamis and nuclear disaster). Japan taught investors a lesson: it is better to invest in safe territories.
Consequently, they start looking for such safe territories to invest in their infrastructure. Of course seismic areas with frequent earthquakes are not on the list of such territories. Most investors are now looking at Europe.
FOREX.
Obviously, the latest earthquakes have been a severe blow for New Zealand’s economy. It well may affect the NZ Dollar exchange rate in the short run.
In the mean time NZDUSD keeps setting new price records.
According to the Department of Masterforex-V TS, NZDUSD is forming wave b (C )H4. If the rally continues it will take the form of wave c(C ) H4 after there is a bullish FZR. In this case 0,8430 and 0,8570 will become the closest resistance levels. A deeper retracement can be considered after the prices breaks below the MF pivot and sloping channel (as shown below):
