Economists expect lower growth in New Zealand.
Lower growth could reach New Zealand for the first quarter of 2018. Amongst the reasons for the lower GDP is the cooling in the housing market, as well as the low prices of dairy products.
Analysts polled expect the quarterly growth to be only 0.5%, being lower than the 0.7% of the previous quarter, this would result in an increase of 2.7% annually, compared to the 2.9% reported in the last quarter of 2017. This deceleration would force the RBNZ to maintain the interest rate at the next monetary policy decision meeting.
FOREX DAILY ANALYSIS
EURUSD is still testing the bottom line consolidating below 1.16 as a relevant resistance level. We expect a new lower low between 1.1520 and 1.1425. Invalidation level of the mid-term bearish cycle is 1.1852.
GBPUSD is moving bearish, and still, we expect that the price complete the bearish cycle in the key support at 1.3109, creating a bullish connector. Short-term resistance level is 1.3298.
USDCHF still is moving bullish seeking the parity making a flag pattern. We still maintain our vision for the Swiss currency that could make a new bearish leg with a mid-term target on 0.98 level testing the bullish long-term trendline.
EURNZD is developing a bullish impulsive move. We foresee that the cross should to make a retrace as a flag pattern from where EURNZD could bring a new opportunity to incorporate us into the bullish trend with a profit target at least at 1.7064. Invalidation level is 1.6572.
GBPNZD is running upward building an ascending channel. Our vision is that every dip is an opportunity to go long with a target between 1.944 and 1.958, from where the cross should complete a bullish cycle. Invalidation level is 1.8909.
The FTSE 100 bounced and broke the bearish short-term trendline, but this move could be as a Dead Cat Bounce Pattern. The British index could complete a new bearish leg to the 7,400 area, from where FTSE should build a new bullish connector.
DAX 30 is moving with a bearish bias, the bounce of the current trading session could be a Dead Cat Bounce Pattern, which could drive us to see new lows below the short-term support at 12,547.6, it could even fall to the 12,300 area, from where we foresee that the German index should start a new bullish sequence.