NZD/USD Fundamental Analysis – November 9, 2015 – Forecast

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Published: Nov 6, 2015, 04:32 UTC

Analysis and Recommendation: The NZD/USD dipped 6 points against the strong US dollar which is trading above 98 ahead of the NFP report. A lackluster

NZD/USD Fundamental Analysis – November 9, 2015 – Forecast

Analysis and Recommendation:

The NZD/USD dipped 6 points against the strong US dollar which is trading above 98 ahead of the NFP report. A lackluster DairyTrade Auction is weighing on the commodity currency. New Zealand’s dollar dropped the most among major currencies this week against the greenback, retreating 2.5 percent. A drop in dairy prices at a global auction and an unexpected slump in quarterly employment have opened up the prospect of further interest-rate cuts.

The US dollar gauge, which tracks the U.S. currency against 10 major peers, was little changed Friday after climbing 0.9 percent over the past three days. The index is on track for a weekly advance of 0.7 percent, just the second increase in six weeks. Traders now put the odds of a December rate increase at 56 percent, up from 50 percent a week ago and 36 percent last month.

The kiwi is heading for a 2.4 percent weekly decline after Federal Reserve chair Janet Yellen kept alive the prospect of a rate hike next month ahead of tonight’s payrolls report, and as a drop in dairy prices and shrinking employment weighed locally.

Fed chair Yellen this week said December’s meeting of the Federal Open Market Committee was live for a possible increase in the federal funds rate, with the world’s biggest central bank upbeat on the US services sector. It will get another update on the strength of the economy when non-farm payrolls for October are reported on Friday in Washington, which are expected to show the world’s biggest economy added 182,000 workers that month.

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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