NZD/USD Fundamental Analysis – December 3, 2015 – Forecast

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Published: Dec 2, 2015, 05:29 UTC

Analysis and Recommendation: The NZD/USD dipped 10 points to 0.6666 as the greenback gained some of yesterday’s losses otherwise markets were quiet. The

NZD/USD Fundamental Analysis – December 3, 2015 – Forecast

Analysis and Recommendation:

The NZD/USD dipped 10 points to 0.6666 as the greenback gained some of yesterday’s losses otherwise markets were quiet. The kiwi dollar gained as investors try to gauge the potential pace of US interest rates hikes, ahead of speeches by Federal Reserve chair Janet Yellen. The DX a measure of the greenback against a basket of currencies, extended its decline as traders look for more guidance on the path for higher interest rates, having largely priced in a hike by the Fed later this month. Yellen is scheduled to deliver a speech on Wednesday in Washington before testifying before a Congressional committee.

At the same time, Australia’s central bank yesterday kept its target cash rate at 2 percent, while a rise in global dairy prices stoked speculation New Zealand’s Reserve Bank may be able to stave off a cut when it reviews policy next week.

Westpac’s Speizer said Australia looks unlikely to cut interest rates anymore, while New Zealand might not ease further, which would push the kiwi up much higher. Westpac is still picking a New Zealand rate cut next week, though it’s finely balanced at a 60 percent chance, he said.

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.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
AUD	GDP (YoY) (Q3)	2.5%	2.4%	1.9%
AUD	GDP (QoQ) (Q3)	0.9%	0.8%	0.3%

Upcoming Economic Events that you should be monitoring:

Thursday, December 3, 2015

Cur.	Event	Actual	Forecast	Previous
GBP	Services PMI (Nov)		55.0	54.9
EUR	Deposit Facility Rate (Dec)		-0.30%	-0.20%
EUR	Interest Rate Decision (Dec)		0.05%	0.05%
EUR	ECB Press Conference
USD	Fed Chair Yellen Testifies
USD	ISM Non-Manufacturing PMI (Nov)		58.0	59.1