NZD/USD Fundamental Analysis April 2, 2014 Forecast

Analysis and Recommendation:

The NZD/USD was flat this morning trading at 0.8674 but remains well above its recent trading range after Chinese PMI met expectations although the HSBC report showed a slight dip, so there was little market response. In Australia the RBA held rates and policy firming the currency and leaving the kiwi with little guidance. Also a dovish tone from Janet Yellen yesterday has left markets confused as the US dipped late on Monday and is in the green by 1 point this morning. The kiwi has been in demand as the Reserve Bank of New Zealand became the first central bank of a developed country to start normalizing policy this year.

Yellen said yesterday at a conference in Chicago that the Fed hasn’t done enough to combat unemployment even after holding interest rates near zero for more than five years and pumping up its balance sheet with bond purchases. The dollar held losses versus most major peers as investors weigh whether U.S. economic data this week will be strong enough to alter the outlook for central bank policy.

The greenback remained lower following a two-day decline against the euro after Federal Reserve Chair Janet Yellen said the world’s biggest economy will need monetary stimulus “for some time.” Economists predict a report today will show a growth in manufacturing quickened last month, while a private survey tomorrow may indicate stronger jobs growth.

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 up to the data analysis and information in our weekly reports.

Economic Data April 1, 2014 actual v. forecast

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Government Bond Auction

Date Time Country         

Apr 03 08:30 Spain

Apr 03 09:03 Sweden

Apr 03 15:00 US