By FXEmpire.com
Analysis and Recommendation: (close of the Asian session)
The NZD/USD is trading at 0.8162 after the release of the NZD rate statement.
The New Zealand dollar rose ahead of the central bank’s review of interest rates and after the Federal Reserve said it saw “moderate” growth in the US economy, though with downside global risks.
The New Zealand dollar rose to 81.34 US cents from 81.15 cents.
The trade-weighted index rose to 72.44 from 72.35.
Reserve Bank Governor Alan Bollard will keep the official cash rate at a record low 2.5%
Reserve Bank governor Alan Bollard has fired a shot across the bows of the foreign exchange market, warning that if the exchange rate remains strong, without anything else changing, he would need to reassess the outlook for monetary policy settings.
The comment came in the release of the bank’s official cash rate review which, as universally expected, left it on hold at its all-time low of 2.5 per cent.
Six weeks ago he said that sustained strength in the New Zealand dollar would reduce the need for future increase in the OCR. That accompanied forecasts which penciled in hardly any increase in the OCR – just 25 basis points a year for the next three years.
Since then the kiwi dollar has not budged despite, as the governor points out today, recent falls in export commodity prices.
In New Zealand dollar terms those prices have fallen by 18 per cent over the past year – even before the latest Fonterra auction at which dairy prices dropped with a thud – but the exchange rate has shrugged it off.
Economic Data for April 25-26th, 2012 actual v. forecast
|
GBP |
GDP (QoQ) |
-0.2% |
0.1% |
-0.3% |
|
|
GBP |
GDP (YoY) |
0.0% |
0.3% |
0.5% |
|
|
GBP |
CBI Industrial Trends Orders |
-8 |
-6 |
-8 |
|
|
USD |
Core Durable Goods Orders (MoM) |
-1.1% |
0.5% |
1.9% |
|
|
USD |
Durable Goods Orders (MoM) |
-4.2% |
-1.7% |
1.9% |
|
|
USD |
Interest Rate Decision |
0.25% |
0.25% |
0.25% |
|
|
NZD |
Interest Rate Decision |
2.50% |
2.50% |
2.50% |
|
|
Apr. 26 |
KRW |
South Korean GDP (QoQ) |
0.9% |
0.9% |
0.3% |
|
KRW |
South Korean GDP (YoY) |
2.8% |
3.0% |
3.3% |
|
|
GBP |
Nationwide Consumer Confidence |
53 |
42 |
44 |
|
Economic Events scheduled for April 27, 2012 that affect the NZD, AUD, and JPY
01:00 AUD HIA New Home Sales (MoM) (Mar)
HIA New Home Sales released by the Housing Industry Association presents the number of new home sales in Australia. It indicates the housing market condition. House buyers spend money on furnishing and financing their homes, which stimulates the demand for goods, services, and the employees
05:00 JPY Housing Starts (YoY) (Mar)
The Housing Starts released by the Ministry of Land, Infrastructure and Transport captures how many new single-family homes or buildings were constructed. It shows the strength of the Japanese housing market, which can be considered as the economy as a whole due to Housing Starts” sensitivity to changes in the business cycle
05:00 JPY Annualized Housing Starts (Mar)
The Annualized Housing Starts released by the Ministry of Land, Infrastructure and Transport captures how many new single-family homes or buildings were constructed. It shows the strength of the Japanese housing market, which can be considered as the economy as a whole due to Housing Starts’ sensitivity to changes in the business cycle
12:30 USD Gross Domestic Product Annualized (Q1)
The Gross Domestic Product annualized released by the US Bureau of Economic Analysis shows the monetary value of all the goods, services and structures produced within a country in a given period of time. It is a gross measure of market activity because it indicates the pace at which a country’s economy is growing or decreasing.
12:30 USD Gross Domestic Purchases Price Index (Q1)
The GDP Price Index released by the Bureau of Economic Analysis, Department of Commerce gauges the change in the prices of goods and services. Changes in the GDP price index are followed as an indicator of inflationary pressure that may anticipate interest rates to rise.
12:30 USD Real Personal Consumption Expenditures (QoQ) (Q1)
The Real Personal Consumption Expenditure released by the US Bureau of Economic Analysis is an average of the amount of money the consumers spend in a month on durable goods, consumer products, and services.. It is considered as an important indicator of inflation.
13:55 USD Reuters/Michigan Consumer Sentiment Index (Apr)
The Reuters/Michigan Consumer Sentiment Index released by the Reuters/University of Michigan is a survey of personal consumer confidence in economic activity. It shows a picture of whether or not consumers are willing to spend money.
Government Bond Auctions (this week and first week in May)
Apr 27 09:10 Italy BTP/CCTeu auction
Apr 27 09:10 Italy Eur 1.5-2.5bn 4.75% May 2017 & Eur 1.5-2.5bn 5.5% Sep 2022 & Eur
0.75-1.25bn 3.75% Apr 2016 & 4.25% Feb 2019 BTPs
May 01 09:30 UK Auctions 4.5% 2042 Conventional Gilt
May 02 09:10 Sweden Nominal bond auction
May 02 09:30 Portugal Eur 1.25-1.5bn new Nov 2012 & new May 2013 T-bills
May 02 13:00 US Announces details of 3Y Notes on May 08, 10Y Notes on May 09 & 30Y
Bonds on May 10
May 02 14:30 Sweden Details T-bill auction on May 09
May 03 08:30 Spain Bono auction
May 03 08:50 France OAT auction
Click here a current NZD/USD Chart.
Originally posted here
