Analysis and Recommendation: The NZD/USD added 13 points with the local markets closed for a domestic holiday. The kiwi is trading at 0.6638 after China
The NZD/USD added 13 points with the local markets closed for a domestic holiday. The kiwi is trading at 0.6638 after China pumped in additional stimulus on Saturday helping its trading partners to gain. The New Zealand dollar (NZD) was the strongest currency this week as the domestic unemployment rate in the last quarter of 2015 plunged from 6% to 5.3% and employment grew 0.9% after falling 0.5% in the previous quarter.
The news was enough to dislodge pessimism instilled by a negative diary auction, conducted hours earlier, in which it was shown prices for the country’s key export fell a whopping 7.4%.
Currency markets took cheer from the employment data and bid the NZ dollar to US dollar conversion from 0.6488 at the start of the week to the mid-week close of 0.6665.
Traders are keeping their eyes on the horizon and ask whether the employment data is enough to convince the all-important decision makers at the Reserve Bank of New Zealand (RBNZ) that there is no need to cut interest rates further.
Lower interest rates mean lower yields on New Zealand bonds which would spark an outflow of foreign capital from the country, driving the NZD lower.
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:
Upcoming Economic Events that you should be monitoring:
Tuesday, February 9, 2016
Cur. | Event | Actual | Forecast | Previous | |||
China – Lunar New Year | |||||||
AUD | HIA New Home Sales (MoM) (Dec) | -2.7% | |||||
GBP | BRC Retail Sales Monitor (YoY) (Jan) | 0.4% | 0.1% | ||||
AUD | NAB Business Confidence (Jan) | 3 | |||||
EUR | German Industrial Production (MoM) | 0.4% | -0.3% | ||||
EUR | German Trade Balance (Dec) | 20.2B | 19.7B | ||||
GBP | Trade Balance (Dec) | -10.35B | -10.64B | ||||
GBP | Trade Balance Non-EU (Dec) | -2.55B | -2.45B | ||||
USD | JOLTs Job Openings (Dec) | 5.400M | 5.431M |
Government Bond Auctions
Date Time and Country
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