NZD/USD Fundamental Analysis October 2, 2014 Forecast

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Updated: Aug 24, 2015, 21:00 UTC

Analysis and Recommendation: The NZD/USD was sympathetic to the Aussie and declined 25 points to trade at 0.7783. The NZD weakened on the Chinese PMI

NZD/USD Fundamental Analysis October 2, 2014 Forecast

Analysis and Recommendation:

The NZD/USD was sympathetic to the Aussie and declined 25 points to trade at 0.7783. The NZD weakened on the Chinese PMI release, which showed a decline in domestic/internal growth. The US dollar continued to climb adding 8 points in the morning session to reach 86.12. The US Dollar Index (DX) traded on a positive note and gained around 0.4 percent in the yesterday’s trade on the back of weak market sentiments in later part of trade which led to increase in demand for the low yielding currency. However, sharp upside in the currency was capped due to unfavorable economic data. US Chicago Purchasing Managers’ Index (PMI) fell by 3.8 points to 60.5-mark in September as against a rise of 64.3-level in August. The Conference Board (CB) Consumer Confidence declined by 6.4 points to 86-mark in September from 92.4-level in August.

NZX, which operates the New Zealand stock exchange and the dairy futures market, is offering a new service for the dairy industry to forecast local milk production and calculate milk prices. From this month, NZX is offering a Milk Production Predictor, which estimates New Zealand milk production for the coming three months, with forecasts based on climate, pasture growth and cow numbers, the Wellington-based company said in a statement. Dairy production and exports are the leading products for the kiwi economy. Fonterra Cooperative Group, the world’s biggest dairy exporter, holds its next fortnightly GlobalDairyTrade auction early tomorrow morning. Dairy prices edged up from a two-year low at the last event, having slumped about 45 percent from a peak in February.

The New Zealand dollar touched an 11 percent slump in the September quarter as global demand for the greenback has rallied on the prospect of rising US interest rates next year, and as the Reserve Bank of New Zealand confirmed it had been active in the currency market, having jawboned the kiwi since July.

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
CNY	Manufacturing PMI	51.1	51.0	51.1
AUD	Retail Sales (MoM)	0.1%	0.4%	0.4%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
AUD	HIA New Home Sales			-5.7%
AUD	Building Approvals		1.0%	2.5%
AUD	Trade Balance		-0.700B	1.359B
GBP	Construction PMI		63.5	64.0
EUR	Interest Rate Decision		0.05%	0.05%
USD	Initial Jobless Claims		297K	293K
USD	Factory Orders (MoM)		-9.3%	10.5%