NZD/USD Fundamental Analysis, April 27, 2015 – Forecast

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Published: Apr 24, 2015, 03:30 GMT+00:00

Analysis and Recommendation: The NZD/USD fell 37 points to trade at 0.7556 after the US dollar regained a bit of yesterday’s losses. Comments from the

NZD/USD Fundamental Analysis, April 27, 2015 – Forecast

Analysis and Recommendation:

The NZD/USD fell 37 points to trade at 0.7556 after the US dollar regained a bit of yesterday’s losses. Comments from the central bank indicated that another interest rate was not in the cards. Renewed weakness in the greenback helped the New Zealand dollar trim some of its losses. Investors had hit the kiwi hard on Thursday in response to dovish comments from the Reserve Bank of New Zealand.

The kiwi dropped yesterday after McDermott told a business lunch in Hamilton that the Reserve Bank isn’t considering an increase in interest rates at present and is watching for any signs of weakening demand and domestic inflationary pressures that could warrant a rate cut. That contrasts with previous Reserve Bank comments that future interest rate moves could be “either up or down”, and prompted traders to take a more dovish stance ahead of next week’s official cash rate review.

“The New Zealand dollar lost ground yesterday as markets interpreted the RBNZ as shifting from a neutral bias to a neutral bias with downside risks,” ANZ Bank New Zealand senior economist Mark Smith and senior FX strategist Sam Tuck said in a note. “Markets consolidated on that theme overnight.”

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.

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