NZDUSD Analysis & Forecast 10th July
- The New Zealand dollar declined along with the commodity correlated currency group today, a broad based carry trade unwind was seen; this came as key policy makers met in Brussels to work on a way forward for the euro-crisis.
- Concerns around Chinese inflation data and a potential slowdown in this area have added downside pressure on commodities and the S&P500 has dropped around half a percent.
- Spanish and Italian bonds declined on elevated concerns that policy makers will not be able to sufficiently control a euro-contagion scenario. Spanish 10 year yields moved above the critical 7% level.
- NZDUSD is trading under the 0.8000 area and price action around this level could be key in the near term.
Bank Of New Zealand Revise NZDUSD Forecast
- The BNZ (Bank of New Zealand) has cut its NZD/USD forecast, they have cited a ”sharper than expected slowing in the global economy”. NZD fundamentals as still seen as providing key support for the New Zealand currency. BNZ is now forecasting the pair could trade near to the 00.82 level by the end of the year which is downfrom the previous forecast of 00.85.
- Additional economic data is scheduled from China later this week, and the New Zealand dollar remains vulnerable to any negative figures in this area.
- Key US data this week includes Trade Balance, Unemployment Claims, PPI and Prelim UoM Consumer Sentiment.