NZD/USD Fundamental Analysis October 13, 2014 Forecast

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Updated: Aug 24, 2015, 23:00 UTC

Analysis and Recommendation: The NZD/USD eased by 2 points to trade at 0.7862 as the US dollar continued to ease, as traders feel more comfortable that

NZD/USD Fundamental Analysis October 13, 2014 Forecast

Analysis and Recommendation:

The NZD/USD eased by 2 points to trade at 0.7862 as the US dollar continued to ease, as traders feel more comfortable that the Fed will continue to delay interest rate increases. The New Zealand dollar declined as investors regained confidence in the outlook for the US economy amid uncertainty about growth in other regions.

New Zealand export log prices have lifted from a two-year low as Chinese importers resume buying and local returns are bolstered by a decline in the New Zealand dollar and cheaper shipping costs.

The average wharf gate price for New Zealand A-grade logs fell to $76 a tonne in July, the lowest since April 2012, but have since recovered to $80 a tonne in August and $88 a tonne in September, according to Agrifax’s monthly survey of exporters, forest owners and sawmills. This month’s survey, which is still being collated, is also likely to show a gain, Agrifax said.

Chinese importers have resumed log buying after a glut of inventories on Chinese ports pushed down prices. China is New Zealand’s largest log market and wood is the nation’s third-largest commodity export. New Zealand returns in the past two months have been bolstered by a decline in the value of the kiwi and cheaper shipping charges as a result of increased capacity.

The dollar index, which measures the greenback against a basket of currencies, advanced as investors turned to the world’s largest economy amid uncertainty about growth in other areas such as Europe. A report showed German exports tumbled 5.8 percent in August, their steepest fall since the 2009 recession. That follows weaker data for German August factory production and new orders earlier in the week, sparking concern about the strength of Europe’s largest economy.

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 actual vs. forecast:

Cur.	Event	Actual	Forecast	Previous
JPY	Monetary Meeting
JPY	Tertiary Industry	-0.1%	0.2%	-0.3%
AUD	Home Loans	-0.9%	0.1%	0.3%

Upcoming Economic Events that you should be monitoring:

Cur.	Imp.	Event	Actual	Forecast	Previous
	Holiday	Japan – Health-Sports Day
	Holiday	Canada – Thanksgiving Day
NZD		FPI (MoM) (Sep)			0.3%
CNY		Exports (YoY) (Sep)			9.4%
CNY		Imports (YoY) (Sep)			-2.4%
CNY		Trade Balance (Sep)			49.83B