NZD/USD Fundamental Analysis – August 18, 2015 – Forecast

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Published: Aug 17, 2015, 04:38 UTC

Analysis and Recommendation: The NZD/USD was flat at 0.6537 as traders began to push the greenback back to higher levels after comments over the weekend

NZD/USD Fundamental Analysis – August 18, 2015 – Forecast

Analysis and Recommendation:

The NZD/USD was flat at 0.6537 as traders began to push the greenback back to higher levels after comments over the weekend about two possible rate increases ignoring last week’s Chinese fiasco.

The New Zealand dollar has had a quiet few days ahead of a week that will include the next dairy auction and data from the United States. Flat domestic retail sales data released on Friday rounded out a volatile week that revolved around the repeated devaluation of the Chinese currency.

A much quieter time was expected this week, ASB senior economist Jane Turner said. She said there was expectation that prices would lift at the GlobalDairyTrade auction, which takes place overnight on Tuesday.

“Contributing to that is Fonterra reducing auction volumes and also Futures markets are indicating prices will pick up,” she said. “If that’s the case, it should provide support to the New Zealand dollar.”

The other key focuses will be farther abroad, with inflation data and Federal Reserve minutes out from the United States on Wednesday and Thursday NZ time.

The New Zealand dollar fell again following reassurances from China that there was no reason for the yuan to fall further. China’s yuan slid for the third time in a row on Thursday but its central bank said strong economic conditions meant there was no reason for the yuan to continue falling.

This eased concerns and, along with stronger retail sales figures from the United States, boosted the greenback and refocused attention on the likelihood of a Federal Reserve interest rate increase in September.

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.

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