NZD/USD Fundamental Analysis August 20, 2012, Forecast

Posted August 17, 2012 5:13 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
Add a comment

Category:

Fundamental Reports

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

Analysis and Recommendation:

The NZD/USD is trading at 0.8096 down a few pips from yesterday. Worries over the Chinese recovery and the possibility of stimulus from the PBoC weight on the currency. After a disappointing jobs report last week, the economy seems fragile and very sensitive to regional crisis.

Hopes of higher prices on dairy goods favor the currency as the drought in the US may push prices up a bit.

The New Zealand dollar rose after German Chancellor Angela Merkel provided a boost to the eurozone, signaling her conditional support to the European Central Bank’s bond buying program.

Merkel reiterated her commitment to working with the ECB to resolve the region’s debt crisis and to help reduce the borrowing costs of indebted nations, in her first public comment on the turmoil in over a month.

Merkel is supposedly showing her allegiance to the ECB but it’s what it doesn’t say, the details – the bonds are under conditions which Spain and Greece don’t like.

Spain will apply for aid at a meeting of finance ministers in September, allowing the ECB to buy Spanish government debt in the secondary market once approval is won, Bloomberg reported.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data August 16-17, 2012 actual v. forecast (No Asian releases on the 17th)

Date

Currency

Event

Actual

Forecast

Previous

Aug. 16

KRW

South Korean Unemployment Rate

3.1%

3.3%

3.2%

GBP

Retail Sales (MoM)

0.3%

-0.1%

0.8%

GBP

Retail Sales (YoY)

2.8%

1.4%

2.6%

EUR

CPI (YoY)

2.4%

2.4%

EUR

Core CPI (YoY)

1.7%

1.9%

1.6%

USD

Building Permits

0.812M

0.770M

0.760M

CAD

Foreign Securities Purchases

-7.89B

10.67B

26.11B

USD

Housing Starts

0.746M

0.757M

0.754M

CAD

Manufacturing Sales (MoM)

-0.40%

0.40%

-0.40%

USD

Initial Jobless Claims

366K

365K

364K

USD

Continuing Jobless Claims

3305K

3300K

3336K

USD

Philadelphia Fed Manufacturing Index

-7.1

-5.0

-12.9

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date	Time	Currency	Event	Previous
Aug 21	1:30	AUD	Monetary Policy Meeting Minutes
	3:00	NZD	Inflation Expectations q/q	2.4%
	23:50	JPY	Trade Balance	-0.30T
Aug 22	0:30	AUD	MI Leading Index m/m	0.8%

Want to read more articles like this one?

Enter your e-mail address and read FX Empire content directly from your inbox.

We value your privacy. Your e-mail address will not be shared.

About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

View all of FX Empire Analyst - Barry Norman's Articles