Outlook and Recommendation The NZD/USD ended the month at a near term 2014 low at 0.7808 after Graham Wheeler talked down the currency and it was
The NZD/USD ended the month at a near term 2014 low at 0.7808 after Graham Wheeler talked down the currency and it was announced that the RBNZ intervened heavily in the currency market last month. Everything happened at the very end of September as the US dollar surged and economic data weighed on the currency markets. Protests in Hong Kong kept Asian traders on edge and lackluster data from China weighed heavily on the kiwi this month. The New Zealand dollar is heading for an 11 percent slump in the September quarter as global demand for the greenback has rallied on the prospect of rising US interest rates next year, and as the Reserve Bank of New Zealand confirmed it had been active in the currency market, having jawboned the kiwi since July.
The kiwi has been under pressure in recent weeks as global investors rally behind the greenback on growing anticipation the Federal Reserve will start moving on interest rates as the world’s biggest economy recovers. Falling commodity prices for dairy and logs, two of New Zealand’s biggest exports, have also put pressure on the kiwi, along with heightened rhetoric from Reserve Bank governor Graeme Wheeler in calling the currency unsustainably and unjustifiably high. Central bank figures yesterday confirmed market speculation the bank had intervened in foreign exchange markets in August, with net sales totaling $521 million in the month.
The kiwi is expected to rebound in early October as the tiny countries economy is doing well.
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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.
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