By FXEmpire.com
Outlook and Recommendation
The NZD/USD ended May at 0.7534. The chart below shows the trading range of the NZD in May.
The worst performer of the primary currencies, the New Zealand dollar (NZD) lost 8% in May. The CFTC reports a net short NZD position of just US$-0.4 billion; however it is reflective of sentiment that has turned noticeably bearish. Technicals suggest early signs of stabilization into June.
New Zealand’s economic scenario will be shaped by the regional growth downturn and the government’s reconstruction efforts following the natural disasters of 2010 and 2011. Post-earthquake reconstruction investment may reach US$15 billion in the next 18 months, becoming a major driver of economic activity. The fiscal stimulus measures will undoubtedly erode the already weak fiscal base, with the budget gap possibly reaching 7% of GDP by the close of the year. Gross fixed investment, rather than net exports, will become the major driver of economic growth, expected to reach 2.5% this year
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.
Central Bank Name: Reserve Bank of New Zealand
Date of next meeting or last meeting: Jun 14
Current Rate: 2.50 % (- 0.50)
Statement highlights of last meeting: The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent. Inflation has settled near the middle of the Bank’s target range, and inflation expectations have fallen. The domestic economy is showing signs of recovery. Household spending appears to have picked up over the past few months and a recovery in building activity appears to be underway. That recovery will strengthen as repairs and reconstruction in Canterbury pick up later in the year. High export commodity prices are also helping to support a continuing recovery in domestic activity.
Historical
Highest: 0.8816 USD on Jul 31, 2011.
Average: 0.7543 USD over this period.
Lowest: 0.6619 USD on Jun 07, 2010.
Economic events for the month of June affecting AUD, JPY, NZD and USD
|
Time |
Cur. |
Event |
Forecast |
Previous |
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|
Friday, June 01 |
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|
12:30 |
USD |
8.1% |
8.1% |
|||||
|
12:30 |
USD |
150K |
115K |
|||||
|
14:00 |
USD |
53.9 |
54.8 |
|||||
|
Tuesday, June 05 |
||||||||
|
04:30 |
AUD |
3.75% |
3.75% |
|||||
|
Wednesday, June 06 |
||||||||
|
01:30 |
AUD |
0.5% |
0.4% |
|||||
|
Thursday, June 07 |
||||||||
|
01:30 |
AUD |
-5.0K |
15.5K |
|||||
|
01:30 |
AUD |
5.1% |
4.9% |
|||||
|
23:50 |
JPY |
1.0% |
||||||
|
Tuesday, June 12 |
||||||||
|
21:00 |
NZD |
2.50% |
||||||
|
Wednesday, June 13 |
||||||||
|
21:00 |
NZD |
2.50% |
2.50% |
|||||
|
Wednesday, June 20 |
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|
22:45 |
NZD |
0.3% |
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Click here for updated NZD/USD News.
Originally posted here
