By ForexMansion.com

 

The NZ dollar weakened last week after the Reserve Bank of New Zealand kept interest rates steady at a record low 2.50%, because of the Bank aims to revive the economy from the January and February quake.

Moreover, the New Zealand monetary policy makers will keep the rates unchanged steady at 2.50% this year as economic growth is to be slow. In March, Bollard cut the key rate by half a percentage point after the earthquakes.

The New Zealand economic recover is to be supported with trade after the trade surplus widened during the month of March due to the nation’s exports of milk powder that soared to a record, along with the continuing rise in commodity prices.

The New Zealand trade surplus widened to NZ$464 million during the month of March, from the previous revised surplus NZ$193 million in February.

Furthermore, The New Zealand gross domestic product expanded during the quarter of September to December, more than forecasts as the nation’s exports soared along with stronger construction that helped the economy to escape a new recession, after the quake that hit the nation on February 22.

Consumer prices in New Zealand rose less than forecasts in the first three months of the year, adding that the Reserve Bank of New Zealand will delay raising interest rate till the second half of 2011 at least. Consumer spending and home sales remain weak due to the worst earthquake in 8 decades that hit the economy by the end of last year, encouraged policy makers to keep rates low to support the economy.

The major highlights for this week that will affect the NZD/USD pair’s trading:

Monday April 2:

The New Zealand economy will release the ANZ commodity price index for April at 01:00 GMT, where the previous reading was 4.7%.

The U.S. economy will start the week with the construction spending index for March at 14:00 GMT, where it’s expected to show an increase of 0.3% after the previous decline of 1.4%.

The ISM manufacturing data will be released at 14:00 GMT and expected to come at 60.1 compare the previous of 61.2.

Tuesday May 3:      

New ZealandTuesday at 22:45 GMT (Monday) will publish its average hourly earnings for the first quarter, which is expected to ease to 0.5% compared to 0.6%.

The United States will release the factory orders for March at 14:00 GMT, where the previous reading was –0.1% and the expectation is for a rise by 1.5%.

Wednesday May 4:

New Zealandbuilding permits for March will be published at 22:45 GMT (Tuesday) following the previous 9.7% decline.

The US ADP employment change is due at 12:15 GMT which expected to show 200,000 added jobs in April from a 201,000 the previous month.

Further the USD ISM Non-manufacturing composite has a heavy effect on the market movement, which will be released at 14:00 GMT and expected with further expansion to 57.8 in April from 57.3 during March.

Thursday May 5:

The New Zealand economy will release the employment change during the first quarter at 22:45 GMT (Wednesday), where the previous reading was down by 0.5% as for the annualized reading for the quarter it had a previous reading of 1.3%.

The Unemployment rate in New Zealand for the first quarter is expected to show a drop to 6.7% compare with the previous increase of 6.8%.

At 12:30 GMT the U.S economy will release the weekly initial claims numbers, where the number of people filing for first-time claims for state unemployment insurance has reached 429 thousand.

Friday May 6:

The New Zealand economy won’t release any fundamental data, while the United States of America will issue a number of economic data on Friday, starting with the non-farm payrolls at 12:30 GMT, which is expected to show that the U.S. economy added 196 thousand jobs during the month of April compared with the previous 216 thousand jobs.

Unemployment rate during the month of April is expected to settle at 8.8% while the yearly average hourly earnings index is expected to rise by 1.7%.

Any improvement in new jobs in the United States could drive more gains for kiwi versus the dollar and send NZD/USD higher on improved risk appetite and eased woes over the outlook for the recovery. 

Originally posted here

Read more about forex technical analysis, forex fundamental analysis and forex news on ForexMansion.com

About ForexMansion.com:

www.ForexMansion.com is a part of the Finance Mansion Network which operates global financial websites. Our goal is to provide our readers with the most accurate, quality and up-to-date technical analysis, fundamental analysis and news in order to assist them in making the right financial decisions.

The Finance Mansion Network includes www.FinanceMansion.com,www.ForexMansion.com, www.StocksMansion.com, www.CommoditiesMansion and many more.