NZD/USD Fundamental Analysis April 25, 2013 Forecast

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Updated: Aug 21, 2015, 17:00 GMT+00:00

Analysis and Recommendation: The NZD/USD is trading at 0.8440 after the RBNZ held its key rate at 2.50%. The New Zealand dollar rose as much as 0.7

NZD/USD Fundamental Analysis April 25, 2013 Forecast

Analysis and Recommendation:

The NZD/USD is trading at 0.8440 after the RBNZ held its key rate at 2.50%. The New Zealand dollar rose as much as 0.7 percent against the greenback after Reserve Bank governor Graeme Wheeler backed off from talking down the currency at today’s monetary policy review where he kept the benchmark rate unchanged. Wheeler held the official cash rate at 2.5 percent, as expected; saying inflation is set to stay near the bottom of his target band of between 1 percent and 3 percent this year, but will “gradually rise towards the 2 percent target midpoint.” After saying the kiwi was “overvalued and higher than projected in March,” some traders were expecting him to take a tougher stand on the currency, having reminded markets last month that a surging currency could force a rate cut.

Government figures last week showed consumer prices rose at an annual pace of 0.9 percent in the first three months of the year, the third quarter in a row where it’s been below the central bank’s target band.

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.

Economic Data April 24, 2013 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Apr. 24

NZD

Interest Rate Decision

2.50%

2.50%

NZD

RBNZ Rate Statement

JPY

CSPI (YoY)

-0.2%

-0.4%

0.0%

AUD

CPI (QoQ)

0.4%

0.7%

0.2%

AUD

Trimmed Mean CPI (QoQ)

0.3%

0.5%

0.6%

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Date	Time	Currency	Event	Forecast	Previous
Apr. 25	13:30	USD	Initial Jobless Claims	351K	352K
	13:30	USD	Continuing Jobless Claims	3060K	3068K
	23:45	NZD	Trade Balance	472M	414M