NZD/USD Fundamental Analysis October 21, 2014 Forecast

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Updated: Aug 25, 2015, 02:00 UTC

Analysis and Recommendation: The NZD/USD is trading at 0.7952 to start the week off adding 35 pips as the US dollar tumbled on Friday and continued in

NZD/USD Fundamental Analysis October 21, 2014 Forecast

Analysis and Recommendation:

The NZD/USD is trading at 0.7952 to start the week off adding 35 pips as the US dollar tumbled on Friday and continued in the red today. Traders will be closely monitoring Chinese GDP data due in the early hours on Tuesday. China so far has avoided launching a broad-based stimulus plan to rev up the economy for fears that a cut in interest rates or other broad easing measures might cause a flood in lending that would worsen China’s debt problems and put the economy at greater risk. Lending ticked up last month, with the central bank reporting Thursday that Chinese banks issued 857.2 billion yuan ($US138.3 billion) of new yuan loans in September, up from 702.5 billion yuan in August, in what economists said is an attempt to re-energize the economy.

China’s economic growth has already slowed to 7.5 per cent in the second quarter compared with a year ago and 7.4 per cent in the first quarter, an 18-month-low. Economists widely believe third-quarter data, to be released Tuesday; will show growth slowing to 7.2 per cent, according to a Wall Street Journal survey.

New Zealand consumer confidence has fallen to a 12-month low as households feel less cheery about the future, with economic growth coming to a halt. The ANZ- consumer confidence index fell 4.3 points to 123.4 in October, its lowest reading in 12 months though still above its long-term average of 118.8. The current conditions index edged up 0.3 of a point to 124.4, while future conditions dropped 7.4 points to 122.8.

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
	Holiday	Kenya – Mashujaa Day
JPY		BoJ Governor Kuroda

Upcoming Economic Events that you should be monitoring:

Cur.	Imp.	Event	Actual	Forecast	Previous
CNY		Fixed Asset Investment		16.3%	16.5%
CNY		GDP (QoQ) (Q3)		1.8%	2.0%
CNY		GDP (YoY) (Q3)		7.2%	7.5%
CNY		Industrial Production		7.5%	6.9%
USD		Existing Home Sales		5.10M	5.05M
USD		Existing Home Sales		1.0%	-1.8%