The fourth quarter report by Binary Option Broker Optionova on the New Zealand economy shows that there is growing optimism in the markets about its activity and growth, which have shown a shift in sentiment towards levels only seen before the fallout. The improvement in the economy has led many experts and economists to believe that the Reserve Bank of New Zealand will raise its interest rates this year.
During the research by Optionova, its experts noticed an increase in business activity shown by the New Zealand Institute of Economic Research during the last two quarters of last year. Optimism of business is at the maximum level for the past 20 years, as mentioned on the report by the economists of the Shamubel Ikub institute. Strong business activity and a high level of optimism should eventually materialize into higher profits, higher investment and more jobs, they said.
Last year, the September optimism report was at 33 percent, but then in December it jumped to 52 percent, which is the highest it has been since the summer of 1994. There has been also growth in activity of domestic trade, for which the balance was 15%, that was the highest since March 2005 and exceeds the level of September of 12%. There is also growth of employment that has reached the maximum of 2006. At the moment, experts expect the hiring of additional staff to continue in the current year and it gives hope for improvement of the situation in the employment sector and in growth of wages.
Canterbury has is another New Zealand city that has shown a very positive recovery. There is also an increase of activity in all sectors of the New Zealand economy. The level of price pressure remains subdued, but the central bank plans to increase rates over the coming quarters, explaining its decision by increased production capacity and strengthening of economic growth in general. At this time, in Canterbury we have already noted the appearance of restrictions imposed by the production capacity and its figures appear in other regions.
More and more investors and analysts of the financial sector are expecting a rate increase by the Reserve Bank of New Zealand. They even expect the increase to be substantial. The balance sheet increased 71% following the results in the second half of 2013 with a value of 30% at the end of the first half.
The NZD is currently being supported by upbeat fundamentals and is in a bullish wave of AB of the second daily level, noticed the experts of the online trading system Optionova, which is rated among the TOP Binary Option Brokers by Masterforex-V World Academy. At the moment, sub-wave 3/C is not completed and may further rise to the maximum of 0.8431. A breakdown will show continuation of the current wave. Probable resistance appears at the levels of the Fibonacci tool, 0.8488 and 0.8542 high. By breaking the pivot MF 0.8205 and an upward sloping channel MF, the pair will complete the current wave.
