NZD/USD Weekly Fundamental Analysis – Week of May 23, 2016

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Published: May 21, 2016, 07:26 UTC

The NZD/USD drifted down this week fighting the stronger US dollar. The kiwi will start the new week at 0.6756. A rally to end the week in the Asian

NZD/USD Weekly Fundamental Analysis – Week of May 23, 2016

The NZD/USD drifted down this week fighting the stronger US dollar. The kiwi will start the new week at 0.6756. A rally to end the week in the Asian Equity markets, as well as Oil prices recovering to pre-FOMC minutes prices have increased demand for higher yielding currency. The Japanese Yen remains the favored currency to initiate carry against, as the BOJ’s decision to move to negative interest rates in January of this year has made the currency even more attractive to hold carry trades. (Economics Calendar)

The New Zealand dollar rose after figures showed the nation continues to welcome migrants at a record pace, ensuring a key plank of economic growth and demand remains in place. Net migration was 68,100 in the 12 months through April, with 5,520 in April alone seasonally adjusted. That was down from the 5,800 monthly average since October 2015 but still suggested an elevated net inflow. Strong migration and tourism, also at a record in the latest 12 months, are helping offset the negative effects of a weaker rural sector to keep the economy growing at a moderate pace. Tourist arrivals rose 11 percent to a record 3.27 million.

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.

Major Economic Events for the week:


	Cur.	Event	Actual	Forecast	Previous
Monday, May 23, 2016
		Canada – Victoria Day
Tuesday, May 24, 2016
	USD	New Home Sales (Apr)		523K	511K
Wednesday, May 25, 2016
	CAD	Interest Rate Decision		0.50%	0.50%
	USD	Crude Oil Inventories			1.310M
Thursday, May 26, 2016
	GBP	GDP (QoQ) (Q1)		0.4%	0.4%
	GBP	GDP (YoY) (Q1)		2.1%	2.1%
	USD	Core Durable Goods Orders (MoM) (Apr)		0.3%	-0.2%
	USD	Pending Home Sales (MoM) (Apr)		0.6%	1.4%
Friday, May 27, 2016
	USD	GDP (QoQ) (Q1)		0.9%	0.5%