NZD/USD Fundamental Analysis – Forecast for the week of September 19, 2016

By:

Published: Sep 17, 2016, 06:55 UTC

The NZD/USD is a strong buy in this new week as it is expected to recover the losses in the new week after the BoJ decision and the FOMC meeting. The pair

NZD/USD Fundamental Analysis – Forecast for the week of September 19, 2016

The NZD/USD is a strong buy in this new week as it is expected to recover the losses in the new week after the BoJ decision and the FOMC meeting. The pair closed the week at 0.7267 down 0.83% for the week. The RBNZ will meet later this week but no changes are expected. The ANZ consumer confidence index rose four percentage points to 121 in August from July, the strongest level since January.

ANZ chief economist Cameron Bagrie said the improvement was no surprise given the strength in house prices and pick-up in the dairy sector.

“Consumers are feeling more confident about the future as well as remaining upbeat about the right here and now.”

A net 11 percent of respondents said they were better off than this time last year and a net 31 percent said they expected to be better off in the next 12 months, with expectations for house price growth also rising.

Mr Bagrie said the high New Zealand dollar was also keeping a lid on import prices, which was making consumers more willing to buy big-ticket items such as appliances and cars.

“Our confidence composite gauge – combining business and consumer sentiment – continues to flag solid-to-strong GDP (gross domestic product) growth over coming months. Four percent real GDP growth is in prospect,” he said.

Official data showed the economy grew 3.6 percent in the year to June, the strongest since the end of 2014.

FxEmpire provides a wide variety of analysis on a daily, weekly and monthly basis ranging from our exceptional technical analysis as well as our in-depth fundamental analysis along with our daily news and market updates. To get the best understanding of each asset it is important to review the short term daily analysis with the longer term monthly reports. To get email notification when each of these are posted please sign up for our daily newsletter.

This Week’s Economic Events That You Should Be Monitoring:

Date	Country	Name	Volatility	Previous
9/20/2016	AUD	RBA Meeting’s Minutes	3
9/20/2016	CAD	BoC Governor Poloz	3
9/21/2016	AUD	Mid-Year Economic Outlook	3
9/21/2016	JPY	BoJ Interest Rate Decision	3	-0.1
9/21/2016	JPY	BoJ Monetary Policy Statement	3
9/21/2016	JPY	BoJ Press Conference	3
9/21/2016	USD	FOMC Economic Projections	3
9/21/2016	USD	Fed’s Monetary Policy Statement	3
9/21/2016	USD	Fed Interest Rate Decision	3	0.5
9/21/2016	USD	FOMC Press conference	3
9/21/2016	NZD	RBNZ Interest Rate Decision	3	2
9/22/2016	EUR	ECB President Draghi’s Speech	3
9/23/2016	AUD	RBA’s Governor Lowe Speech	3