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NZD/USD Weekly Fundamental Analysis, October 6-10 2014, Forecast

By:
Barry Norman
Updated: Aug 24, 2015, 23:00 UTC

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

NZD/USD Weekly Fundamental Analysis, October 6-10 2014, Forecast

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NZD/USD Weekly Fundamental Analysis, October 6-10 2014, Forecast
NZD/USD Weekly Fundamental Analysis, October 6-10 2014, Forecast
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 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

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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

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