NZD/USD Fundamental Analysis May 30, 2014 Forecast

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Updated: Aug 23, 2015, 22:00 GMT+00:00

Analysis and Recommendation: The NZD/USD eased by 7 points to trade at 0.8488 as the US dollar strengthens. The kiwi continues to weaken as demand from

NZD/USD Fundamental Analysis May 30, 2014 Forecast

Analysis and Recommendation:

The NZD/USD eased by 7 points to trade at 0.8488 as the US dollar strengthens. The kiwi continues to weaken as demand from China eases and dairy prices fall. New Zealand’s dollar may extend declines from a more-than two-month low against its U.S. peer after closing below a key level of support, according to Royal Bank of Canada. The kiwi weakened 0.2 percent 84.77 U.S. cents from yesterday, when it dropped to as low as 84.70, the weakest since March 12. The currency has lost 1.5 percent this month, the sharpest monthly drop since January.

The New Zealand dollar fell below 85 US cents to its lowest in more than two months as sentiment waned following a drop in business confidence and a weaker forecast payout to dairy farmers from Fonterra. The New Zealand dollar was the weakest performing major currency measured by Reuters. Sentiment toward the kiwi waned after the ANZ Business Outlook survey posted a third monthly drop in the face of rising interest rates, declining dairy prices and an elevated kiwi dollar. That followed Fonterra reducing its payout for the coming season and paring back its expectation for the season just ending. The kiwi faced a stronger US dollar overnight, with the greenback benefiting from weakness in the euro.

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 29, 2012 actual v. forecast

Cur.	Event	Actual	Forecast	Previous
	Switzerland – Ascension Day
JPY	Foreign Bonds Buying	90.5B		1,416.3B
JPY	Retail Sales (YoY)	-4.4%	-3.3%	11.0%
AUD	HIA New Home Sales (MoM)	2.9%		0.2%
AUD	Building Capital Expenditure (MoM)	-7.4%		-2.2%
AUD	Plant/Machinery Capital expenditures (QoQ)	2.8%		-9.0%
AUD	Private New Capital Expenditure (QoQ)	-4.2%	-1.4%	-4.5%

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

Date	Currency	Event	Forecast	Previous
May 30	JPY	Tokyo Core CPI (YoY)	2.9%	2.7%
	JPY	National Core CPI (YoY)	3.1%	1.3%
	JPY	Household Spending (YoY)	-3.2%	7.2%
	JPY	Industrial Production (MoM)	-2.0%	0.7%
	AUD	Private Sector Credit (MoM)	0.4%	0.4%
	NZD	ANZ Business Confidence		64.8%
	USD	Core PCE Price Index (MoM)	0.2%	0.2%
	USD	Personal Spending (MoM)	0.2%	0.9%
	USD	Chicago PMI	61.0	63.0
	USD	Michigan Consumer Sentiment	82.4	81.8
	USD	Michigan Consumer Expectations	74.0	73.2