Which News Events Can Drive USD and NZD This Week?

Significant events to watch:

-NZ (NZD): New Zealand Interest Rate Decision

-US (USD): U.S. Gross Domestic Product (GDP) QoQ

-US (USD): U.S. Core PCE Price Index YoY

NZ (NZD): New Zealand Interest Rate Decision – The Reserve Bank of New Zealand (RBNZ) governor decides where to set the rate after consulting senior bank staff and external advisers. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

A higher than expected rate is positive/bullish for the NZD, while a lower than expected rate is negative/bearish for the NZD.

The previous reading was 5.50 %, in line with the expectations. The next report is due on February 27, 2024 at 01:00 GMT. Its forecast also stands at 5.50%.

US (USD): U.S. Gross Domestic Product (GDP) QoQ – Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.

Usual Effect: Actual > Forecast = Good for currency

There are 3 versions of GDP released a month apart – Advance, second release and Final. Both the advance the second release are tagged as preliminary in the economic calendar.

The previous reading was 3.3% better than the expected 2.0%. The upcoming report is due on February 28, 2024 at 13:30 GMT. Its forecast stands at 3.3%.

US (USD): U.S. Core PCE Price Index YoY – The Core PCE price Index is the less volatile measure of the PCE price index which excludes the more volatile and seasonal food and energy prices. The impact on the currency may go both ways, a rise in inflation may lead to a rise in interest rates and a rise in local currency, on the other hand, during recession, a rise in inflation may lead to a deepened recession and therefore a fall in local currency.

The previous actual data was 2.9% worse than the forecast of 3.0% The upcoming report is due on February 29, 2024 at 13:30 GMT and its forecast figure stands at 2.8%.

Risers and Fallers

-FTSE 100 (-0.07%)

-Intel Corp (-2.21%)

-Walmart (+3.09%)

-Brent Oil (-2.62%)

FTSE 100 Index– The index demonstrated a neutral performance last week, losing nearly 0.07% in value. Overall, the FTSE 100 has shown a bearish trajectory over the last 1 year, shedding almost 2.88% gains.

Intel Corp – The stock declined by 2.21% in the last 5 days. Nonetheless, INTC has displayed an uptick performance these past 6 months, adding over 27% in value.

Walmart – Walmart’s stock climbed previous week, adding almost 3.09% in value. It has also exhibited a positive performance value during the previous 6 months, accumulating almost 10% gains.

Brent Oil – Brent Oil’s price dropped 2.62% in the past 5 days. The commodity is now trading at 79.94 USD.  

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