NZD/USD Fundamental Analysis – September 23, 2015 – Forecast

Analysis and Recommendation:

The NZD/USD dipped 3 points but was relatively stable on a quiet trading day. Traders are focused on Chinese data due this week. The kiwi is trading at 0.6317 getting a bounce this week after dairy prices climbed higher than expected. The New Zealand dollar extended its decline from a three-week high on concern the Federal Reserve’s unwillingness to raise interest rates last week suggests both the US and the global economy are weaker than expected.

Equity markets fell across Asia today, following declines on Wall Street on Friday after the Fed delivered a more dovish message than expected and kept interest rates near zero. The Fed pointed to global growth concerns, seen as a reference to a slowing Chinese economy, but chair Janet Yellen also emphasized that inflation and some broad measures of employment in the US weren’t quite as strong as was needed to hike rates last week.

he US dollar index, a measure of the greenback against a basket of currencies, rallied after Atlanta Fed president Lockhart said he would have voted for a hike at last week’s Federal Open Market Committee review if he was a member, saying “I am confident the much-used phrase ‘later this year’ is still operative,” and that the delay was mostly influenced by heightened market volatility. Lockhart’s comments echo other Fed officials over the weekend, who support raising interest rates.

“Markets reassessed their risk-off reaction to the Fed’s move to some degree last night,” ANZ Bank New Zealand senior economist Sharon Zollner and senior FX strategist Sam Tuck said in a note. “Markets completed the reversal of the Fed reaction last night, with NZD/USD trading lower as markets took heed of Fed speakers – who talked of normalization.”

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:

Wednesday, September 23, 2015

Government Bond Auctions

Date Time Country

Date Time Country Auction

Sep 23 11:30 Germany Eur 4bn Sep 2017 Schatz

Sep 23 16:30 Sweden Announces details of auction on 30 Sep

Sep 23 19:00 US Holds 2-year FRN auction

Sep 23 19:00 US Holds 5-year note auction

Sep 24 11:00 Sweden Holds I/L bond auction

Sep 24 17:30 Italy Announces details of BTP/CCTeu on 29 Sep

Sep 24 19:00 US Holds 7-year note auction

Sep 25 11:10 Italy Auctions CTZ/BTPei

Sep 28 11:30 Germany Eur 1.5bn 12M (Sep 2016) Bubills