NZD/USD Fundamental Analysis October 10, 2014 Forecast

Analysis and Recommendations: The short-covering rally by the NZD/USD continued from the start of Thursday’s trading session, but the Forex pair could not hold on to its gains and finished lower. The rally was being driven by the dovish September minutes delivered by the U.S. Federal Reserve on Wednesday.

Thursday’s weakness was led by falling commodity prices talk of the need for a lower currency by Reserve Bank Governor Graeme Wheeler and the threat of additional intervention. Most traders agree that any short-covering rally will likely be met because of the bearish fundamentals and more intervention by the central bank.

While the U.S. Fed fears the slowing global economy, the RBNZ is afraid of the damage a strong currency would do to the New Zealand economy. Although technical factors will lead to periodic rallies, this Forex pair is still poised to move lower.

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. 

Today’s Economic Releases 

                Currency                                                  Event                                                     Forecast        Previous

                 

                 EUR                                          French Industrial Production                                 -0.2%             0.2%

                 GBP                                          Trade Balance                                                       -9.6B             -10.2B

                 CAD                                          Employment Change                                            18.7K            -11.0K

                 CAD                                          Unemployment Rate                                              7.0%              7.0%

                 USD                                          Import Prices m/m                                                -0.5%             -0.9%

                 USD                                          FOMC Member Plosser Speaks

                 ALL                                           IMF Meetings

                 CAD                                          BOC Business Outlook Survey

                 ALL                                           G20 Meetings

                 USD                                          FOMC Member Fisher Speaks