NZD/USD Fundamental Analysis December 30, 2014 Forecast

Analysis and Recommendation:

The NZD/USD dipped by 10 points to trade at 0.7762 as traders looked at the fall of the Aussie, last week’s rally by the kiwi. Chinese economic stress continues to weigh on the NZD. The New Zealand dollar touched a fresh nine-year high against the Australian dollar as weaker commodity prices weigh more heavily on the Australian economy.

The collapse in the oil price in recent months has led to investors eschewing assets with links to commodities; stoking speculation the Reserve Bank of Australia may cut interest rates.

Such a cut would increase the yield advantage New Zealand has over its neighboring economy. The currencies of both countries are also weakening against the US dollar as the world’s largest economy continues to improve.

New Zealand export log prices have advanced for a fifth month as a decline in shipping costs bolstered local returns and offset weak prices from China, the country’s largest market.

New Zealand log returns were bolstered in the month by a fall in shipping costs following a collapse in oil prices and a decline in the New Zealand dollar

In the New Zealand domestic market, sawn timber production in the third quarter was the highest in four years amid expectations for increased building activity over the New Zealand summer, Mr Luketina said, citing Ministry for Primary Industries figures.

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.

Wishing You All The Best In The New Year

Today’s economic releases actual vs. forecast:

There is no Asian or European Economic Events on the calendar today

 

Upcoming Economic Events that you should be monitoring:

Tuesday, December 30^th

Government Bond Auction

Date Time Country Auction

Dec 30 12:10 Italy BTP/CCTeu auctions