NZD/USD Fundamental Analysis – December 2, 2015 – Forecast

Analysis and Recommendation:

The NZD/USD gained 45 points on the back of a declining US dollar as well as the RBA move and the climb of the Aussie. Many traders are seeing a positive side to Chinese manufacturing and non-manufacturing data released today. New Zealand is a large exporter to China, but its goods are primarily not used in manufacturing such as dairy products. The NZD is trading at 0.6629.

Investors are favoring currencies with higher interest rates, such as the New Zealand dollar, where the benchmark is at 2.75 percent, and the Australian dollar where rates are 2 percent. That compares with Europe, where the European Central Bank is expected to take interest rates even further into negative territory when it meets this week, and Japan with a benchmark near zero, where Bank of Japan governor Haruhiko Kuroda said yesterday the central bank won’t hesitate to ease monetary policy further to achieve its inflation goal quickly.

Today, third-quarter terms of trade data is published and the latest monthly house values for November are released by Quotable Value. Tonight, all eyes will be on the GlobalDairyTrade auction where NZX milk futures are signaling an increase.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole. Please click on the links to find the most recent reports for this asset.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, December 2, 2015

Government Bond Auctions

Date Time Country

Dec 02 11:30 UK Gbp 3.75bn 1.5% Jan 2021 Gilt

Dec 02 16:30 Sweden Announces details of Bond on 11 Dec

Dec 03 10:30 Spain 1.15% Jul 2020 Bono

Dec 03 10:50 France

Dec 03 11:03 Sweden Sek 0.7bn 1%

Dec 07 13:00 Norway Details bond auction on 09 Dec

Dec 07 17:30 Italy Announces details of BTP/CCTeu on 11 Dec

Dec 08 11:30 UK 3.5% 2045 Gilt auction

Dec 08 19:00 US Holds 3-year note auction

Dec 09 11:03 Sweden Holds bond auction

Dec 09 11:05 Norway Holds bond auction

Dec 09 11:30 Germany Eur 3bn Dec 2017 Schatz

Dec 09 19:00 US Holds 10-year note auction

Dec 10 19:00 US Holds 30-year bond auction

Dec 11 11:10 Italy Auctions BTPs/CCTeus