NZD/USD Fundamental Analysis – August 10, 2015 – Forecast

Analysis and Recommendation:

The NZD/USD dipped another 8 points against the stronger greenback. The kiwi is trading at 0.6544 in the morning session. The predominant market focus today is on the US jobs report to be released later in the session.  On the back of dairy companies announcing a string of forecast milk price downgrades and prices continuing to plunge at the Global Dairy Trade (GDT) auctions, predictions are the current hard times for the dairy sector could potentially last another 18 months to two years.

Fonterra Cooperative Group’s board is expected to cut the forecast payout to farmers after global milk prices have extended their slump this year, putting pressure on the nation’s terms of trade. That deterioration prompted New Zealand’s central bank to start cutting interest rates in June.

New Zealand’s two-year swap rate increased to 2.88 percent at 5pm in Wellington from 2.835 percent yesterday, and the 10-year swap rose to 3.7 percent from 3.6375 percent.

US non-farm payrolls for July on Friday in Washington are the next major data as markets weigh up the prospects for a rate hike by the Federal Reserve when it next reviews policy next month.

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.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Monday, August 10, 2015

Government Bond Auctions

Date Time Country

Aug 10 17:30 Italy Announces details of BTP/CCTeu on 13 Aug

Aug 11 11:30 UK Auctions 0.125% 2058 I/L Gilt

Aug 12 11:30 Germany Eur 4bn Aug 2025 Bund

Aug 13 11:10 Italy Auctions BTPs/CCTeus

Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz

Aug 19 11:03 Sweden Holds bond auction

Aug 20 10:30 Spain Auctions Bonos/Obligaciones

Aug 20 11:30 UK Auctions 4.25% 2036 Gilt

Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug