The NZD/USD pair advanced to its highest level in two months, as the New Zealand dollar was able to record gains against US dollar after the risk aversion retreated from financial market.
On the other hand, the absence of the fundamentals from the New Zealand economy opened the way for Kiwi to move in line with the current market sentiment, which supported the higher-yielding currencies.
Markets are still focused on Europe and the developments to contain the crisis after Merkel and Sarkozy ended the meeting with confirmations that they are making progress. Any developments in the EU crisis will have its toll on the investors’ confidence, where the major currencies movements will be affected sharply by the EU news.
On Wednesday, the U.S. economy will issue the MBA Mortgage Applications at 12:00 GMT, which had a prior reading of – 4.10%.
Originally posted here
