Weekly Analysis and Recommendation: The NZD/USD continued to set new record lows against the US dollar trading at 0.7763. The Fed is considering the
The NZD/USD continued to set new record lows against the US dollar trading at 0.7763. The Fed is considering the timing for its first interest-rate increases since 2006 amid signs the U.S. economy is recovering. The central bank, which meets Oct. 29, is on track to end a program of stimulatory bond purchases this month. Policy makers said at their meeting in July they might increase rates sooner than anticipated if labor-market gains quicken, according to minutes released Aug. 20. Officials at the Fed’s meeting last month forecast the target would be 1.375 percent at the end of 2015.
New Zealand’s central bank announced on Sept. 29 that it sold currency in August in its biggest intervention in seven years. The so-called kiwi tumbled to a 13-month low of 77.09 U.S. cents from this year’s high of 88.36 on July 10. The currency’s recent losses vindicate intervening in markets, a policy that Finance Minister Bill English likened in May to being in a “war zone with a peashooter.” New Zealand’s currency reserves amount to about $16.6 billion, compared with $1.21 trillion in Japan, according to the International Monetary Fund.
The Reserve Bank of New Zealand intervened in the foreign-exchange market after the kiwi climbed in July to within 0.1 cent of the all-time high reached in 2011. Investors were attracted to the nation’s financial assets because of its 3.5 percent benchmark interest rate, the highest among major developed economies.
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.
Historical: From 2011 to Present
Highest: 0.8842 USD on Aug 01, 2011
Average: 0.8131 USD over this period
Lowest: 0.7371 USD on Nov 25, 2011
Events You Should Be Monitoring This Week:
CAD Ivey PMI
NZD NZIER Business Confidence
JPY Monetary Policy Statement
AUD Cash Rate
AUD RBA Rate Statement
JPY BOJ Press Conference
GBP Manufacturing Production m/m
CAD Building Permits m/m
USD FOMC Meeting Minutes
AUD Employment Change
AUD Unemployment Rate
GBP Asset Purchase Facility
GBP Official Bank Rate
GBP MPC Rate Statement
USD Unemployment Claims
EUR ECB President Draghi Speaks
CAD Employment Change
CAD Unemployment Rate
Upcoming Government Bond Auctions
Date Time Country
Oct 07 06:00 Swiss Announces details of optional bond auction on Oct 08
Oct 07 09:00 Norway Bond auction
Oct 07 09:15 Austria RAGB auction
Oct 07 9:30 UK Auctions 3.5% 2045 Gilt
Oct 07 15:30 Italy Announces details of BOT auction on Oct 10
Oct 07 17:00 US 3Y Note auction
Oct 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction
Oct 08 09:30 Swiss Bond auction (for decision)
Oct 08 15:30 Italy Announces details of BTP
Oct 08 17:00 US 10Y Note auction
Oct 09 09:03 Sweden I/L bond auction
Oct 09 17:00 US 30Y bond auction
Oct 10 09:10 Italy BOT auction