Investors are worried about the Australian economy, which makes the NZ Dollar more attractive for currency speculators. Nevertheless, NSDUSD is still trading within a narrow price range.
The New Zealand Dollar well may stay in the range for some time. Westpac experts do not believe that the market will manage to break out of the range fast. They say the northern hemisphere is still seeing a vacation season.
The analysts say that the forthcoming 2-year forecast (which is to be published by the RBNZ next week) will show a 0.2% decline down to 2.2%. This may result in interest rate hikes, with a further rally of NZDUSD.
Forex.
According to , the New Zealand Dollar keeps retracing against the US Dollar. The experts report that NZDUSD is still forming wave А/В of level Н4.
A further downswing will probably take place if the price breaks below 0.8060. if so, the price will meet support around 0.8054 and 0.8036. The current bearish move will be completed as soon as the price consolidates above 0.8104 (as shown below). In this case, 0.8123 will turn into the closest major level of resistance.
