Fitch Ratings has downgraded New Zealand’s credit rating form АА+ down to АА. The size of the country’s public debt and investment risks are said to be the reasons. If to consider that other rating agencies base their actions on the same methodology, Moody`s and S&P may well downgrade NZ’s rating as well.
In terms of economic development NZ is still closer to Great Britain, Germany and the USA and looks stronger than some eurozone countries. Nevertheless, the country’s economy is currently vulnerable (the deficit will grow further).
FOREX.
According to the Department of Masterforex-V trading system , NZDUSD has hit the 6-month low and keeps declining. The decline has the form of wave C or a(C )of Daily. The closest targets are 0,7425 and 0,7330. A trend reversal can be considered after the price breaks above the MF pivot and sloping channel (as shown below):
