The NZD/USD pair advanced last week, where the New Zealand dollar was the biggest winner against the greenback, as risk appetite increased slightly and provided more confidence to investors yet on Friday it all went to waste with the return of jitters over the euro area’s outlook and imminent downgrades.
The ongoing debt crisis in the euro-zone dominated the market sentiment, where the current move in the NZD/USD pair could be a correction, since the main trend still to the downside and likely to return if the fears and news that France lost its top AAA rating are confirmed from France which could be the bearish catalyst for the market this week..
Also the Chinese economy will release its GDP data for the fourth quarter during the week, where the growth data will have its toll on the NZD/USD pair since China is number one trade partner for New Zealand.
On Monday, the New Zealand economy will release the REINZ Housing Price Index for December, where the previous reading was 3304.3, while the REINZ Housing Price Index had a prior reading of 1.1%.
Originally posted here
