NZD/USD Fundamental Analysis October 16, 2014 Forecast

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Updated: Aug 25, 2015, 00:00 UTC

Analysis and Recommendation: The NZD/USD eased by 16 points to trade at 0.7826 after disappointing Chinese CPI and PPI data hit the wires and the

NZD/USD Fundamental Analysis October 16, 2014 Forecast

Analysis and Recommendation:

The NZD/USD eased by 16 points to trade at 0.7826 after disappointing Chinese CPI and PPI data hit the wires and the resurgence of the US dollar which climbed to trade above 86 again. The kiwi declined as signs of weaker European economies turned investor attention to a revival in the US, increasing demand for the greenback. The dollar index jumped overnight following a positive start to the US quarterly earnings season with companies such as Citigroup, JP Morgan and Johnson & Johnson beating expectations.

Meanwhile, European economic news continued to disappoint, with the German government downgrading its forecast for economic growth in the euro-zone’s largest economy. The dollar index has gained more 6.5 percent since the end of June as signs of recovery in the world’s biggest economy contrast with data signaling weakness in China, Japan and the eurozone. China reported the slowest consumer inflation in more than four years today, while a measure of producer prices, which hasn’t shown an increase since January 2012, dropped more than estimated.

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
AUD	Consumer Sentiment	0.9%		-4.6%
CNY	CPI (MoM) (Sep)	0.5%	0.4%	0.2%
CNY	CPI (YoY) (Sep)	1.6%	1.7%	2.0%
CNY	PPI (YoY) (Sep)	-1.8%	-1.6%	-1.2%
JPY	Industrial Production		-1.5%	-1.5%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
NZD	Business NZ PMI (Sep)			56.5
EUR	Core CPI (YoY) (Sep)		0.7%	0.7%
EUR	CPI (MoM) (Sep)		0.4%	0.1%
EUR	CPI (YoY) (Sep)		0.3%	0.3%
USD	Initial Jobless Claims		290K	287K
CAD	Manufacturing Sales		-1.6%	2.5%
USD	Industrial Production		0.4%	-0.1%
USD	Phil Fed Manufacturing		20.0	22.5