NZD/USD Monthly Fundamental Forecast – May 2016

The NZD/USD saw a monthly gain of about 1% supported by a hold by the RBNZ and better than expected commodity prices. As the new month begins there is a load of Chinese data due which could spark some volatility in the kiwi. The NZD is trading at 0.6977. The kiwi surged after the Reserve Bank of New Zealand kept the official cash rate unchanged and made what some traders read as a less emphatic statement about the need to cut interest rates.

The kiwi is expected to fall this month to trade around 0.67 as the US dollar gains and the yen settled down. The RBA meeting on Tuesday and Chinese data over the next week will be key.

The Federal Open Market Committee’s statement this week didn’t give the market a sense it was in a hurry to raise interest rates. While it dropped a reference to the global financial and economic risks, it substituted in that it was “closely monitoring” global developments,

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

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