Analysis and Recommendation: The NZD/USD tumbled 9 points to 0.7944 after a mini rally on Thursday on better than expected dairy prices and word out of
Analysis and Recommendation:
The NZD/USD tumbled 9 points to 0.7944 after a mini rally on Thursday on better than expected dairy prices and word out of China of a new round of stimulus to help domestic growth. The greenback stemmed this week’s losses before data forecast to show an increase in housing starts and building permits in the world’s largest economy. Traders have pushed back expectations on when the Federal Reserve will increase interest rates, driving Treasury yields lower. New Zealand’s dollar fell as much as 1 percent before paring losses after its central bank erroneously republished September comments saying the currency’s level was unjustified and unsustainable.
Speculation the U.S. central bank will raise rates next year had led to a record rally in the U.S. currency. The advance started to reverse last week after minutes of the Sept. 16-17 FOMC meeting showed participants said expansion “might be slower than they expected if foreign economic growth came in weaker than anticipated.”
The Reserve Bank of New Zealand tacknowledged it made an error in releasing a repeat of an earlier statement on the exchange rate, instead of a statement notifying that it was changing the way it calculates the trade-weighted index.
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:
There are no data releases scheduled Friday morning for the Asian markets. Market focus will be on Janet Yellen’s speech later today.
Upcoming Economic Events that you should be monitoring:
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Holiday |
Kenya – Mashujaa Day |
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EUR |
German PPI (MoM) |
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-0.1% |
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CAD |
Wholesale Sales (MoM) |
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-0.3% |
Government Bond Auction
Date Time Country Auction
Oct 20 12:00 Belgium OLO Auction
Oct 20 12:00 Slovakia Bond auction (for decision)
Oct 21 10:30 Spain 3 & 9M T-bill auction
Oct 21 11:00 Norway Bond auction
Oct 21 11:00 UK Auctions 2.75% 2024 Gilt
Oct 22 11:30 Germany Eur 2.0bn Aug 2046 Bund auction
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Oct 23 19:00 US 30Y TIPS auction
Oct 24 17:30 Italy Announces details of BOT auction on Oct 29