NZD/USD Fundamental Analysis October 7, 2014 Forecast

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Updated: Aug 24, 2015, 23:00 UTC

Analysis and Recommendation: The NZD/USD recovered 7 points in the morning session as traders booked profits after the USD climbed to a multiyear high.

NZD/USD Fundamental Analysis October 7, 2014 Forecast

Analysis and Recommendation:

The NZD/USD recovered 7 points in the morning session as traders booked profits after the USD climbed to a multiyear high. The NZD is trading at 0.7770. The New Zealand dollar is getting sold heavily as the Asian markets get more active for the session). The kiwi has been dropping for weeks and months now and its continuing this morning. The future profitability of dairy farming in the wake of falling international prices for dairy products is likely to be a factor on the kiwi.

New Zealand property values rose at the slowest annual pace in 15 months in September, while certainty after the general election, new spring listings and interest rates remaining on hold renewed interest in the market.

New Zealand employment confidence rose to a six-year high in the September quarter.

The New Zealand dollar fell at the end of the week after better-than-expected US employment figures fuelled optimism about the strength of recovery in the world’s biggest economy, stoking demand for the greenback. The US added 248,000 jobs in September, pushing the unemployment rate to a six-year low 5.9 percent, according to Labor Department figures. That beat market expectations for 215,000 jobs to be added in the month and a jobless rate of 6.1 percent, prompting a rally in US stocks and the greenback on growing anticipation the Federal Reserve will start hiking interest rates as the US economy gathers steam. Minutes to the Federal Reserve’s September meeting and a slew of central bank speakers will be closely watched by the market this week.

The kiwi dollar has come off a peak in July amid falling commodity prices for logs and dairy, two of New Zealand’s biggest exports, and has been helped on its way by the Reserve Bank confirming it intervened in currency markets in August. Governor Graeme Wheeler has called the local currency unjustifiably and unsustainably high since July, with the kiwi falling more slowly than commodity prices.

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
AUD	MI Inflation Gauge	0.1%		0.0%
AUD	ANZ Internet Job Ads	1.1%		1.4%
AUD	ANZ Job Advertisements	0.9%		1.6%
AUD	ANZ Newspaper Job Ads	-3.5%		1.8%

Upcoming Economic Events that you should be monitoring:

Currency

JPY	Monetary Policy Statement
AUD	Cash Rate
AUD	RBA Rate Statement
JPY	BOJ Press Conference
CHF	Foreign Currency Reserves
GBP	Halifax HPI m/m
CHF	CPI m/m
CHF	Retail Sales y/y
GBP	Manufacturing Production m/m
GBP	BOE Credit Conditions Survey
CAD	Building Permits m/m
GBP	NIESR GDP Estimate
USD	JOLTS Job Openings