NZD/USD Fundamental Analysis, March 18, 2015 – Forecast

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Updated: Mar 17, 2015, 05:00 GMT+00:00

Analysis and Recommendation: The NZD/USD stayed in the green this morning as the US dollar picked up a bit of yesterday’s declines as traders turn to the

NZD/USD Fundamental Analysis, March 18, 2015 - Forecast

Analysis and Recommendation:

The NZD/USD stayed in the green this morning as the US dollar picked up a bit of yesterday’s declines as traders turn to the two day FOMC meeting due to start today. The kiwi gained 10 points to trade at 0.7378. The New Zealand dollar rose to its highest in more than a week against the Australian dollar as traders await the release of the minutes for the last Reserve Bank of Australia meeting for clues on whether more interest rate cuts are ahead.

The focus will be on Fonterra Cooperative Group’s fortnightly GlobalDairyTrade auction. The BNZ-BusinessNZ performance of services index released today showed continuing growth in February. The index fell 2.2 points to 55.6 last month, with all five sub-indexes above the 50 level that separates contraction from expansion.

Global markets will be back on Fed watch again this week with the March FOMC meeting set to take place. The moves in the USD have continued to dictate how the market feels US policy will play out and the gulf between the US and the rest of the world continues to grow. The greenback has tacked on significant ground, particularly against the euro where it continues to amass gains.

The NZD is being supported by some comments made by Chinese Premier Li Keqiang over the weekend. Premier Li suggested the country has plenty of capacity to deploy targeted stimulus measures if growth slows towards the bottom of the targeted range.

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.

Today’s economic releases actual vs. forecast:

Cur.	Event	Actual	Forecast	Previous
USD	TIC Net Long-Term	-27.2B	27.2B	39.2B
AUD	Monetary Minutes
JPY	BoJ Press Conference

Upcoming Economic Events that you should be monitoring:

Wednesday, March 18, 2015

Cur.	Event	Actual	Forecast	Previous
NZD	Current Account (QoQ)		-3.15B	-5.01B
JPY	Exports (YoY) (Feb)		0.3%	17.0%
JPY	Trade Balance (Feb)		-1,051B	-1,178B
JPY	BoJ Monthly Report
GBP	Claimant Count Change		-30.0K	-38.6K
GBP	BoE MPC Meeting
GBP	Unemployment Rate		5.6%	5.7%
EUR	Trade Balance (Jan)		15.0B	24.3B
CAD	Wholesale Sales (MoM)		-1.0%	2.5%
USD	Economic Projections
USD	FOMC Statement
USD	Fed Chair Yellen Speaks