AUD/USD and NZD/USD Fundamental Daily Forecast – Key Factors Today Include U.S. GDP, Durable Goods and the WEF

The Australian and New Zealand Dollars closed lower on Thursday in reaction to hawkish comments from President Trump.  However, both currencies continue to hover near multi-month highs.

On Thursday, the AUD/USD settled at .8024, down 0.0040 or -0.50% and the NZD/USD closed at .7323, down 0.0015 or -0.21%.

U.S. President Donald Trump on Thursday said he wanted a “strong dollar”, contradicting earlier comments made by Treasury Secretary Steven Mnuchin.

Trump told CNBC in an interview in Davos, Switzerland, that he ultimately wants the dollar to be strong, adding that Mnuchin’s comments had been misinterpreted.

Comments from Treasury Secretary Steven Mnuchin once again fueled a rapid sell-off in the dollar. On Wednesday, Mnuchin triggered a steep break when he said that a weak dollar was good for U.S. trade. But when given the opportunity to clarify his comments at the World Economic Forum early Thursday, Mnuchin did not latch on to the strong U.S. dollar rhetoric used by past Treasury secretaries.

Mnuchin said during a CNBC-moderated panel that the dollar can fluctuate and he is not concerned by the current weakness, but “in the longer term” believes in the “strength of the dollar.”

Forecast

Today, Australia is on a bank holiday and there were no reports from New Zealand although traders may continue to react to yesterday’s report showing lower-than-expected consumer inflation.

On Friday, investors have the opportunity to react to several key U.S. economic reports as well as any comments from the WEF in Davos, Switzerland.

U.S. Advance GDP is expected to come in at 3.0%, down slightly from the previously reported 3.2%.

Core Durable Goods Orders are expected to rise 0.5% versus -0.1% and Durable Goods Orders are expected to rise 0.9% versus a gain of 1.3%.

The Goods Trade Balance is expected to improve to -68.6 billion and Preliminary Wholesale Inventories are forecast at 0.4%.

Bank of Japan Governor Kuroda is also scheduled to speak at the WEF at 1400 GMT.

The plethora of economic activity today likely means we’re going to see more volatility in the USD/JPY.

The market moving event today, however, may be President Trump’s speech at the World Economic Forum in Davos.