2016-11-29 11:41:29

On Monday, Organization for Economic Cooperation and Development (OECD) has issued a positive Outlook for the New Zealand’s economy. According to forecast of this organization, country's GDP in 2016 will grow by 3.5%, in 2017 – by 3.4% and in 2018 – by 2.6%. Positive forecast for the economic growth of the small country with the developed agricultural sector has supported the New Zealand dollar.

At the beginning of the European session the pair NZD/USD traded up against major pairs where the USD dominated.

Minister of Finance of New Zealand Bill English said that economic forecasts for the next six months showed that New Zealand's economy continues to be in advance compared with the economies of the most developed countries. New Zealand's economy is one of the fastest growing economies in the world.

However, the prospects for the NZD in 2017 are negative.

Narrowing gap between the interest rates in the United States and New Zealand and further slowdown in Chinese economic growth, as well as uncertainty about the behavior of the commodity prices can lead to the decline in the pair NZD/USD in the short term and in 2017.

Slowdown in the housing market of New Zealand and the decline in housing prices can force the RBNZ to continue the lowering in the rates in New Zealand and the narrowing gap in the interest rates in the United States and New Zealand will reduce attractiveness of the New Zealand currency against the USD. Meanwhile, strong economic statistics of New Zealand and the rise in the world prices of milk powder and the other dairy products have a positive impact on New Zealand currency.

Market participants are waiting for the financial stability report of the Reserve Bank of New Zealand, which may raise concerns about the potential instability in the housing market. The report will be published today at 23:00 (GMT+3).NZD/USD: Positive forecast for the New Zealand’s economy have supported the national currency.  Fundamental analysis for 29/11/2016