New Zealand current account deficit forecast to skyrocket

NEW YORK (Forex News Now) – Statistics New Zealand is due on Tuesday to publish key data on the current account deficit, in the day’s major realtime news event affecting the kiwi.

The report is expected to show that the deficit in the value between imports and exports skyrocketed to -2.23 billion in the third quarter, according to two major online FX trading news outlets, down from a deficit of 0.88 billion in the second quarter.

The office is scheduled to release the report at 9:45 P.M., GMT; as such, the data is likely to have a big impact on currency market trading the following day.

However, it should be overshadowed by the release of a report 24 hours later on quarterly GDP figures.

According to NZD/USD analysis, if the current account data show a smaller-than-forecast deficit, it could lift the currency pair toward short-term resistance around the Dec. 13 high of 0.7576.

But should the data show an even greater deficit than expected, NZD/USD could fall toward short-term support around the Dec. 17 low of 0.7350.