NZD / USD is recovering in April, after testing the last year's minimums. On the chart, we can see the resumption of the uptrend. The USD strengthened thanks to strong macroeconomic reports showing the economic recovery. However, continuation of the Fed's stimulating monetary policy put pressure on the USD in April.
It is difficult for the New Zealand dollar to cope with a strong dollar, and yet, in this confrontation, it managed to set a course for recovery. Perhaps the NZD will face new fences along the way, this week, which is key for both currencies. Many important reports are expected, including the US GDP in Q1, the FOMC meeting, the trade balance in New Zealand, the business confidence index, and of course the PMI business activity index in China. According to forecasts, the US economy should show strong economic growth in the 1st quarter, but the forecasts for the Chinese economy are not so optimistic: business activity is expected to decline by 0.2 points in April.
Meanwhile, in the US, interesting reports have already been published, according to which, the business activity index in April rose for the fourth month in a row - to a record 63.1 pips, and the consumer confidence index amounted 121.3 pips. Under such an onslaught, it will be difficult for the NZD to continue its recovery, in the absence of significant gains in the New Zealand economy and the whole Asian region.
At the moment, the tools of technical analysis are multidirectional. We believe that the MACD oscillator gives us a more accurate signal - a Sell signal, in the short term. Such deals should be more effective in the near future.
