NZD/USD Fundamental Analysis – August 14, 2015 – Forecast

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Published: Aug 13, 2015, 04:08 UTC

Analysis and Recommendation: The NZD/USD was flat in the morning session as gains were limited by a drop in Business PMI. The currency was supported by

Analysis and Recommendation:

The NZD/USD was flat in the morning session as gains were limited by a drop in Business PMI. The currency was supported by aggressive action by the Peoples Bank of China to stabilize their currency but lackluster data limited gains as the kiwi moved off its bottoms late on Wednesday and is trading at 0.6620 this morning. The New Zealand dollar has bounced back from the fall it suffered on Wednesday afternoon following a further cut to the Chinese yuan.

The second devaluation of the Chinese currency in two days caused the kiwi to fall below US65 cents in afternoon trading on Wednesday, with widespread falls on the New Zealand share market.

China’s central bank first made a surprise slash to its currency on Tuesday, which was seen as an effort to help support Chinese exports.

Weak economic numbers released on Wednesday underscored Beijing’s reasons for devaluing the yuan.

China’s growth in industrial production, investment and retail sales all slowed in July.

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:

Cur.	Event	Actual	Forecast	Previous
NZD	Business NZ PMI (Jul)	53.5		55.2
GBP	RICS House Price Balance (Jul)	44%	42%	40%
AUD	RBA Assist Gov Kent Speaks

Upcoming Economic Events that you should be monitoring:

Friday, August 14, 2015

Cur.	Event	Actual	Forecast	Previous
NZD	Core Retail Sales (QoQ)		0.7%	2.9%
EUR	German GDP (QoQ) (Q2)		0.5%	0.3%
EUR	Core CPI (YoY) (Jul)		1.0%	1.0%
EUR	CPI (MoM) (Jul)		-0.6%	0.0%
EUR	GDP (QoQ) (Q2)		0.4%	0.4%
USD	PPI (MoM) (Jul)		0.1%	0.4%
CAD	Manufacturing Sales (MoM) (Jun)		2.1%	0.1%
USD	Industrial Production (MoM) (Jul)		0.3%	0.3%
USD	Michigan Consumer Sentiment (Aug)		93.5	93.1