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NZD/USD Fundamental Forecast – February 5, 2016

By:
Barry Norman
Published: Feb 4, 2016, 05:32 UTC

Analysis and Recommendation: The NZD/USD dipped 5 points to 0.6659 on a quiet morning session with little action and little news. The New Zealand dollars

NZD/USD is Trading Sideways

nzdusd thursday bnsnla
Analysis and Recommendation:

The NZD/USD dipped 5 points to 0.6659 on a quiet morning session with little action and little news. The New Zealand dollars pared weekly gains as investors remained skeptical that a rally in commodity prices will last.

The kiwi climbed to their highest levels in at least four weeks Wednesday as the greenback plunged after signs of a slowing U.S. economy helped derail bets on diverging policies between global central banks. Oil rose for a second day Thursday, extending the biggest gain in almost two weeks and paring its loss for the year to 12 percent.

“I’d still be pretty skeptical of the recovery we’ve seen in commodity currencies as oil prices are probably going to head lower and there’s downside risk for other commodities,” said Jason Wong, a currency strategist at Bank of New Zealand Ltd. in Wellington. “It could turn later in the year, but I don’t think we’re near that point yet as we’re still in a sluggish global growth environment.”

New Zealand’s dollar touched 0.6698, the highest since Jan. 6, after a report showed the nation’s unemployment rate fell to a six-year low of 5.3 percent in the fourth quarter.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

Cur. Event Actual Forecast Previous
  EUR ECB President Draghi Speaks        
  GBP BoE Inflation Report        
  GBP Interest Rate Decision (Feb)  0.50% 0.50% 0.50%  
  GBP BoE MPC Meeting Minutes        
  GBP BoE Gov Carney Speaks    

 

nzdusd

Upcoming Economic Events that you should be monitoring:

Friday, February 5, 2016

Cur. Event Actual Forecast Previous
  AUD Retail Sales (MoM) (Dec)   0.5% 0.4%  
  USD Nonfarm Payrolls (Jan)   190K 292K  
  USD Unemployment Rate (Jan)   5.0% 5.0%  
  CAD Employment Change (Jan)   5.5K 22.8K  
  CAD Ivey PMI (Jan)   50.0 49.9

Government Bond Auctions

Date Time and Country

Feb 04 11:50 France Holds bond auction

Feb 04 17:20 Sweden Details of I/L bond auction on Feb 11

Feb 08 16:20 Italy Details of bond auction

Feb 09 11:00 Netherlands Holds DSL auction

Feb 09 11:00 Austria Holds bond auction

Feb 09 11:30 Germany Holds I/L bond auction

Feb 09 11:30 UK 0.125% 2026 Gilt linker auction

Feb 09 n/a UK Details of Gilt auction on Feb 17

Feb 09 19:00 US Holds 3-year note auction

Feb 10 11:30 Germany Euro 5bn Mar 2018 Schatz

Feb 10 17:20 Sweden Details of bond auction on Feb 17

Feb 10 19:00 US Holds 10-year note auction

Feb 11 N/A Italy Euro 4-5bn 30-yr syndicated bond auction

Feb 11 11:03 Sweden Holds I/L bond auction

Feb 11 11:10 Italy Announces details of bond auction

Feb 11 11:30 UK 3.5% 2045 Gilt auction

Feb 11 19:00 US Holds 30-year bond auction

Feb 11 n/a US Details of 30-yr TIPS auction on Feb 18

Feb 12 11:10 France Details of bond auction on 18 Feb

 

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