NZD/USD Unfazed Despite Manufacturing Activity Growth Slowdown
- The New Zealand Dollar was little moved as manufacturing activity data came out
- Sales and volumes increased 0.4% and 2.1 % versus 1.8% and 2.2% prior respectively
- With the RBNZ on hold, traders may turn to this week’s Fed rate decision for key info
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The New Zealand Dollar showed a tepid reaction against its major counterparts as manufacturing acivity data crossed the wires. In the third quarter, New Zealand’s manufacturing volumes increased 2.1 percent q/q. The prior reading was revised lower from 2.8% to 2.2%.
Meanwhile, total manufacturing sales rose 0.4% versus 1.8% in the second quarter. Like the volume data, the previous recording was also revised lower from 2.2%.
Last week, the Reserve Bank of New Zealand’s Governor Graeme Wheeler announced that the current policy path is appropriate for inflation reaching the central bank’s 2% target. The next RBNZ rate decision isn’t until February 2017 which means traders might turn to other near-term high event profiles for fundmental analysis.
Up on the docket this week is December’s FOMC rate decision. The markets are fully pricing in that the central bank will hike rates by 25 basis points. However, the highlight of the event will likely be how aggressive the Fed might take policy tightening in 2017.
Chart compiled in TradingView
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.