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NZD/USD Fundamental Analysis October 20, 2014 Forecast

By:
Barry Norman
Updated: Aug 25, 2015, 01:00 UTC

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

NZD/USD Fundamental Analysis October 20, 2014 Forecast
NZD/USD Fundamental Analysis October 20, 2014 Forecast
NZD/USD Fundamental Analysis October 20, 2014 Forecast

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.

NZDUSD(15 minutes)20141017055546

Upcoming Economic Events that you should be monitoring:

 

Cur.

 

Event

Actual

Forecast

Previous

 

 

Holiday

Kenya – Mashujaa Day

 

  EUR

 

German PPI (MoM)

 

 

-0.1%

 

 

  CAD

 

Wholesale Sales (MoM)

 

 

-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

Oct 23 11:03 Sweden I/L bond auction

Oct 23 17:00 US Announces 2/5/7Y Note & 2Y FRN auctions on Oct 28/29/30 & 29

Oct 23 17:30 Italy Announces details of BTPei/CTZ auctions on Oct 28

Oct 23 19:00 US 30Y TIPS auction

Oct 24 17:30 Italy Announces details of BOT auction on Oct 29

 

 

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