NZD/USD Fundamental Analysis – September 1, 2015 – Forecast

Analysis and Recommendation:

The NZD/USD  tumbled 39 points as traders remain focused data due from China tomorrow. The kiwi is trading at 0.6421. ASB chief economist Nick Tuffley said the kiwi went through an abrupt decline last Monday night, when it tumbled from US66c after the Chinese stock market plummeted, and it has not recovered since then.

“Even though we’ve seen a bit of support for China, there’s still a bit  of a cloud hanging around about the outlook for the Chinese economy,” he said.

The key event for domestic data this week will be the next dairy auction, taking place overnight on Tuesday.

Tuffley said at this stage it looked as though it would be another positive auction, following from the previous one which saw dairy prices lift for the first time since March.

More immediately, Monday will see the release of building consents data, monthly credit figures and the ANZ Business Outlook.

Tuesday will see the Reserve Bank of Australia’s (RBA) rate announcement and markets will be looking to see what comments the RBA will make regarding the outlook for China.

The always-anticipated US non-farm payroll figures are due out on Friday and Tuffley said he expected it to show reasonable growth again.

The US Federal Reserve’s beige book, a summary of perceptions from businesses about the economy, will also be released on Thursday morning NZ time.

Focus in the US will be on the highly-anticipated rate decision from the Fed, which has not hiked interest rates since 2008.

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:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, September 1, 2015

Government Bond Auctions

Date Time Country

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep