Global macro overview for 17.03.2016:
The New Zealand GDP data , together with the current account to GDP, were released overnight. The data turned out to be better than expected. In the final quarter of 2015, the GDP had increased from the level of 0.9% q/q; 2.3% y/y ( 0.7% q/q; 2.1% y/y expected) and account deficit to GDP was released at the level of 0.9% q/q; 2.3% y/y (0.7% q/q; 2.1% y/y expected). Business services were the main catalyst of the robust rise in production last quarter, edging 1.5%, while construction surged 2.5%. Retail trade and accommodation also increased last quarter, up 1.7% amid record number of tourists coming to New Zealand. The worst performer was agriculture sector with production falling 1.7% due to lower beef and sheep output. In conclusion, the overall GDP for 2015 was at the level of 2.3%, lower than 2014 GDP from the level of 4.1%. For this year RBNZ projects the GDP at the level of 2.6% and further accelerations to 3% by March 2017.
Let's now take a look at the technical picture of the NZD/USD pair at the daily time. We can see that the pair got stuck between two important levels: technical support at the level of 0.6565 and technical resistance at the level of 0.6819. The pair is trading in the range zone,and until there is a clear and sustained break out in either directions, it is hard to say whether bulls or bears will take the complete control over the market.