NZD/USD is on the retreat despite upbeat comments on growth and bullish long-term interest forecasts in the NZ budget.
The New Zealand government expects a bigger surplus of NZD 2.86 billion in 2017-18. The official statement says the real GDP growth is forecast to pick up slightly in 2017, supported by migration inflows, investment and a recovery in exports. Growth is expected to peak at 3.8% in 2019.
The budget also sees a pick in the underlying inflation pressures as spare capacity is used up, prompting higher interest rates. Long-term interest rates are expected to rise gradually to 4.3% by 2021.
Finance Minister Steve Joyce announced a NZD 11 billion spending on infrastructure over the next four years. Despite this, the NZD/USD is losing height and was last seen trading around 0.7036 levels.
NZD/USD Technicals
A break above 0.7054 (100-DMA) would open up upside towards 0.7090 (Mar 21 high) and 0.7111 (200-DMA). On the downside, the immediate support is seen at 0.70 (5-dMA) ahead of 0.6966 (50-DMA) and 0.6947 (10-DMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
Recommended content
Editors’ Picks
EUR/USD climbs above 1.1500 ahead of Fed meeting
EUR/USD climbs past the 1.1500 barrier on Wednesday amid a sluggish reversal in the US Dollar. Meanwhile, market investors remain cautious ahead of the Federal Reserve's interest rate announcement later in the European evening.
GBP/USD: Gains appear capped by 1.3480 prior to FOMC
GBP/USD now challenges the upper end of its daily range, approaching the 1.3470-1.3480 band as investors continue to evaluate the UK inflation data and gear up for the upcoming FOMC gathering.
Gold appears range-bound around $3,400, eyes on the Fed, Powell
Gold is trading with a bullish bias and seems to be flat around $3,400 per troy ounce on Wednesday. Rising geopolitical tensions in the Middle East, along with ongoing trade uncertainties, continue to weigh on market confidence and lend some extra support to the yellow metal ahead of the Fed gathering.
Federal Reserve expected to stand pat as markets look for hints of potential interest rate cuts
Market participants widely anticipate the US central bank to leave policy settings unchanged for the fourth consecutive meeting, after cutting the interest rate by 25 basis points (bps) to the 4.25%-4.50% range in December.
Bitcoin, Ethereum and XRP defend key support on sixth day of Israel-Iran war, what to expect
Bitcoin (BTC), Ethereum (ETH), and XRP are holding steady above key support levels. The top three cryptocurrencies have weathered the geopolitical tension and macroeconomic events of the past week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.