Dmitri Lysenko
The New Zealand government is not planning to start massive sales of the national currency in the near future despite the fact that such measure would lower the pressure on local manufacturers and exporters. This is what Bill English, the New Zealand Minister of Finance, thinks on the matter.
He says that the government is not ready to accept the risks associated with currency speculation, especially as the money would come from taxpayers.
Investors’ concerns over the possibility of currency interventions by the central bank are based on the statements made by the Governor of the RBNZ. He says that the New Zealand Dollar is overvalued and therefore affects exporters.
The local production and employment have been declining over the last 3 quarters, thereby preventing the national economy from recovering. Therefore, the New Zealand economy is expected to boost only by 2% during the reporting period. In 2012, the NZ Dollar strengthened by 6.6%. The rally is expected to continue in 2013.
Forex.
According to , the New Zealand Dollar keeps strengthening against the US Dollar. The experts report that NZDUSD is forming wave А(С)/С inside a bigger-scale upswing represented by wave А/В of level Weekly.
A further rally will probably encounter resistance around 0.8571. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 0.8319 (as shown below).
Dmitri Lysenko
