The NZD/USD pair advanced to its highest level in two months as the US dollar retreated against most of its major counterparts due to risk appetite which returned early Tuesday to the financial market.
Confidence returned to the markets after China announced its fourth quarter GDP numbers, showing a growth by 8.9% on the yearly basis which was slightly better than expectations.
The New Zealand dollar was the best performer against the greenback, where Kiwi was supported after the Chinese data, as ongoing expansion in the Chinese economy will increase demand for the New Zealand exports.
On Wednesday at 13:30 GMT, the U.S. economy will release the Producer Price Index for December, where the prior reading was 0.3% and expected to come at 0.1%, on the other hand the annual Producer Price Index had a prior reading of 5.7% and it’s expected to come at 5.1%.
The Total Net TIC Flows for November will be released at 14:00 GMT, with a previous reading of -$48.8 billion, while the Net Long-term TIC Flows had a previous reading of $4.8 billion.
The U.S. Industrial Production for December will be released at 14:15 GMT, and expected at 0.5% after 0.2% drop. The Capacity Utilization for December had a prior reading of 77.8% with expectations to rise to 78.1%.
Originally posted here
