NZD/USD Fundamental Analysis October 29, 2014 Forecast

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Updated: Aug 25, 2015, 03:00 UTC

Analysis and Recommendation: The NZD/USD is trading at 0.7897 up by a few points this morning as the US dollar eases after yesterday’s pending home sales

NZD/USD Fundamental Analysis October 29, 2014 Forecast

Analysis and Recommendation:

The NZD/USD is trading at 0.7897 up by a few points this morning as the US dollar eases after yesterday’s pending home sales report missed expectations and traders prepare for the two day FOMC meeting. Comments from China are bringing 4^th quarter GDP to the forefront as warning that China’s annual growth will peg at 7.3%.

There has been little data out of New Zealand since the trade balance last week; therefore the only push has been the weakness in the US dollar. Last week the monthly trade deficit widened more than expected in September as falling prices for logs and dairy products weighed on exports while imports were boosted by an incoming aircraft.

The dollar held steady in Asia on Tuesday before the US Federal Reserve starts a two-day policy meeting that is expected to see it wind up its six-year-old stimulus program. The dollar eased slightly yesterday ahead of a two-day Federal Reserve policy meeting expected close out the Fed’s six-year-old quantitative easing asset-purchase operations. The Fed has repeatedly said that the first rate change since the fed funds rate was cut to the zero level at the end of 2008 would come “a considerable time” after QE ends. Now that QE is ending, eyes will be on how the central bank changes that language, if at all.

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
	JPY		Retail Sales (YoY) (Sep)	2.3%	0.6%	1.2%

Upcoming Economic Events that you should be monitoring:

Time	Cur.	Imp.	Event	Actual	Forecast	Previous
	JPY		Industrial Production		2.2%	-1.9%
	NZD		Business Confidence			13.4%
	CAD		RMPI (MoM) (Sep)		-1.0%	-2.2%
	USD		FOMC Statement
	USD		Fed Funds Target Rate		0.25%	0.25%