NZD/USD Fundamental Analysis July 3, 2014 Forecast

Analysis and Recommendation:

The NZD/USD  eased by 15 points to trade at 0.8759 as the US dollar recovered a bit. A softening in dairy farmer sentiment and rising interest rates have led overall New Zealand rural confidence to a significant slide in the past quarter, but beef and sheep farmers have bucked the trend, with their confidence levels rising to three-year.  The New Zealand dollar fell against the Australian dollar as traders betting the Reserve Bank of Australia would make a strong statement about an over-valued currency were forced to close out their bets when it didn’t.

RBA governor Glenn Stevens said in his statement on monetary policy that the Australian dollar “remains high by historical standards, particularly given the declines in key commodity prices, and hence is offering less assistance than it might in achieving balanced growth in the economy,” a change from last month’s statement, when he said a weaker currency was assisting in achieving balanced growth in the economy.

Helping underpin confidence in the kiwi and Australian dollars, two PMI index of Chinese manufacturing showed expansion in June, with the official purchasing managers’ index at 51.

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.

Economic Data July 2, 2014 actual v. forecast

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Government Bond Auction

Date Country 

Jul 03 00:30 Japan

Jul 03 08:30 Spain

Jul 03 08:50 France

Jul 03 10:00 Norway

Jul 03 15:00 US