News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Heads Up:🇯🇵 BoJ Summary of Opinions due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-07-27
  • 6 out of 9 Dow Jones sectors ended lower, with 56.7% of the index’s constituents closing in the red. Information technology (-0.80%), industrials (-0.55%) and energy (-0.34%) were among the worst performer, whereas communication services (+0.50%) outperformed. https://t.co/f3nUjK3Mmz
  • Hey there traders! I will be hosting this session in about 50 minutes Will be talking about the Dow Jones and S&P 500 ahead of the Fed and Core PCE data Signup for the session below! https://t.co/cm2ubS2wBd
  • RT @FxWestwater: Asia AM - Japanese Yen Outlook: $USDJPY Drops on Haven Flows as Traders Brace for #FOMC Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/07/27/Japanese-Yen-Outlook-USDJPY-Drops-on-Haven-Flows-as-Traders-Brace-for-FOMC.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr htt…
  • Please join @ddubrovskyFX at 20:00 EST/00:00 GMT for a webinar on what other traders' buy/sell bets say about price trends. Register here: https://t.co/AzOQip9B3r https://t.co/tYPv6QYQIG
  • US Dollar Outlook: Fed Decision Due - Will it Spark Fireworks? The $DXY edged lower on Tuesday with $EURUSD, $GBPUSD, and $USDJPY all feeling Dollar weakness. Will the Fed catch markets off-guard with another hawkish surprise tomorrow? Link to Analysis - https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2021/07/27/us-dollar-outlook-fed-decision-due-will-it-spark-fireworks.html https://t.co/iTt0jJiuUC
  • Crude oil prices are trading largely unchanged following last week's rebound as the Delta variant of Covid and Chinese regulatory measures temper the near-term demand outlook. Get your market update from @FxWestwater here:https://t.co/T3oQa9qksd https://t.co/qgDReDbtcd
  • USD/JPY price action has weakened sharply on the session but is searching for support. Get your $USDJPY market update from @RichDvorakFX here:https://t.co/s6baPFYuS3 https://t.co/1ze3cKJytb
  • RT @BrendanFaganFx: Nasdaq 100 Outlook: Stocks Decline Despite Stellar Tech Earnings, All Eyes Shift to Fed $AAPL $MSFT $GOOG $QQQ $NDX L…
  • $SPX put in for an impressive midday recovery this past session leaving a large lower wick. The scale of the lower wicks consistently larger than corrections off highs https://t.co/BGkiFUwYsk
NZD Ends Week on Positive Note After Fonterra Upgrades Forecast

NZD Ends Week on Positive Note After Fonterra Upgrades Forecast

Tyler Yell, CMT, Currency Strategist
NZD Ends Week on Positive Note After Fonterra Upgrades ForecastNZD Ends Week on Positive Note After Fonterra Upgrades Forecast

Fundamental Forecast for the Kiwi:Neutral

  • New Zealand annual trade deficit widened to its largest margin since April 2009
  • Fonterra raised their milk payout forecast on Thursday giving NZD an end-of-week boost
  • For up-to-date and real-time analysis on the CAD, Oil and market reactions to economic factors currently ‘in the air,’ DailyFX on Demand can help.

New Zealand’s dairy industry accounts for roughly ~25% of the economy’s GDP. Because of this, the economy is highly sensitive to the direction of weekly payouts in dairy auctions and is intensely sensitive to the demand drop from China for imported dairy, which has contributed to the prices paid drop of 50%. This combination along with larger macro-economic risks aligned with the easing bias from the Reserve Bank of New Zealand, which has tracked the NZDs descent from mid-2014.

On Thursday, a report came out from Fonterra, the world’s largest dairy exporter that they were raising their forecast for milk payouts on an earnings jump in 2015. This development sent sentiment through the markets that the RBNZ’s easing stance may be too aggressive and therefore less inclined to cut rates in upcoming meetings. This mild but positive surprise for the Kiwi was most seen notably against commodity currencies.

The trade deficits were concerning in regards to the annual dairy exports as well as exports to China, one of the largest consumers of New Zealand products. Per the Statistics New Zealand, annual dairy exports fell by 25% to $11.99B NZD. Additionally, annual exports to China fell by 28% to $8.36B NZD.

Looking ahead, the markets have Building Permits for August as well as the ANZ Business Confidence report this week. Building permits will be gauged vs the prior reading of 20.4% and the Business Confidence index will look to rise from the dismal -29.1 reading last month. A tick up in either readings could carry the New Zealand dollar higher in a continuation of how it closed out last week.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES