NZD/USD Fundamental Analysis May 3, 2013 Forecast

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Updated: Aug 21, 2015, 19:00 GMT+00:00

Analysis and Recommendation: The NZD/USD gained 30 pips today to trade at 0.8524. The New Zealand dollar rose after the European Central Bank cut its

NZD/USD Fundamental Analysis May 3, 2013 Forecast

Analysis and Recommendation:

The NZD/USD gained 30 pips today to trade at 0.8524. The New Zealand dollar rose after the European Central Bank cut its deposit rate as expected and left the door open to imposing negative deposit rates. Lower interest rates will usually push a currency lower and that’s what happened to the euro overnight. Hinting at negative interest rates shows the ECB is willing to consider unconventional measures to restore its economy.

The ECB dropped its deposit rate to a record low 0.55% from 0.75% after policy makers met today and President Mario Draghi said he was open to the idea of a negative rate-to help stem further deterioration in the euro zone economy.

Traders are now looking ahead to the US non-farm payrolls on Friday, which are expected to show a bounce back from March’s slump to a reading of 140,000 new jobs.

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 May 3, 2013 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

May 03

AUD

AIG Services Index

44.1

49.6