Here are the key factors to keep in mind today for New Zealand Dollar trades:
- New Zealand Westpac Consumer Confidence Index: The Westpac Consumer Confidence Index for the third-quarter showed a decrease to 106.0. This was a troubling sign and forex traders can compare this to the second-quarter Westpac Consumer Confidence Index level of 113.0. A contraction in consumer confidence could spill over into a decrease in consumer spending. The New Zealand economy cannot afford a weak domestic economy as the country already suffers from the negative impact of lower commodity prices while the Chinese slowdown also adds to headwinds for New Zealand. While the decrease in the Westpac Consumer Confidence Index does not automatically mean that the consumer will scale back on spending, it is a trend which forex traders should monitor. New Zealand Net Migration: Net Migration in New Zealand for August was reported at 5,470. Forex traders can compare this to July's downward revised level of 5,730. The New Zealand Dollar shrugged of this economic report.
- New Zealand Credit Card Spending: Credit card spending in New Zealand rose by 1.1% in August monthly and by 10.5% annualized. Forex traders can compare this to July increase of 1.7% monthly and upward revised increase of 9.8% annualized. The monthly slowdown may be linked to the decrease in confidence, but continues to support a stronger currency. The annualized increase provides an even bigger fundamental bullish signal for the New Zealand Dollar.
- Chinese MNI Business Indicator: Since the New Zealand economy is dependent on commodity exports, especially to China, forex traders should always consider Chinese economic data as a very important influence for the New Zealand Dollar. The MNI Business Indicator for September was reported at 51.3. Forex traders can compare this to the level of 56.0 which was reported in August.
Here is the key factor to keep in mind today for US Dollar trades:
- US Existing Home Sales: Existing home sales in the US are expected to decrease by 1.6% to 5,500,000 homes in. Forex traders can compare this to the increase of 2.0% to 5,590,000 homes which was reported in July.
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