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

The NZD/USD spend a lot of time consolidating on the daily chart, but by the time the week-ended, the Forex pair was lower for the week.

Despite the failed attempt to consolidate, which was probably driven by position squaring ahead of the U.S. jobs report and technically oversold conditions, the New Zealand Dollar is still poised to move lower.

With the Reserve Bank of New Zealand feeling its currency is unjustifiably high given falling prices for some of New Zealand’s major commodity exports traders have to be careful about getting caught on the wrong side of the market during an intervention.

Given the threat of an RBNZ intervention and the rising interest rates in the U.S., it looks as if the downside pressure should remain on the New Zealand Dollar.  

High Impact Economic Events That Traders Should Be Aware Of This Coming Week

Currency         Event                                                                      Forecast                           Previous

Monday, October 6

There are on high impact economic events today.

Tuesday, October 7

NZD                NZIER Business Confidence                                                                              32

Wednesday, October 8         

USD                FOMC Meeting Minutes

Thursday, October 9

USD                Unemployment Claims                                        291K                                    287K

Friday, October 10

There are on high impact economic events today.