By FX Empire.com

The NZD/USD pair dropped for the third consecutive week to reach its lowest level in six weeks, where Kiwi is loosing more ground against the greenback as risk aversion shifted traders away from higher-yielding currencies such as the Kiwi.

The greenback continued its strong performance against other major currencies, as the current market sentiment support the safe haven currencies such as the US dollar and the yen.

On the other hand, the EU debt crisis still has its negative effect on the financial market and on other economies, which fueled fears of the global economy outlook and drove investors to abandon higher-yielding currencies.

The Chinese economy also reduced demand for raw materials from New Zealand, as a result of their policy to cool down the economy in order to fight the current inflation pressure, which affected negatively the New Zealand economy.

The NZD/USD pair is to record more losses during the upcoming period, as the current market sentiment in addition to the slowdown in top economies are increasing fears between traders and drive them to safe assets.

Major highlights for this week that will affect the NZD/USD pair’s trading

Monday November 21:

At 15:00 GMT, the U.S. economy will release the Existing Home Sales for October, where it’s expected to come at 4.80 million down by 2.2% from the previous reading of 4.91 million which is down by 3.0%.

Tuesday November 22:

On Tuesday at 02:00 GMT the Reserve Bank of New Zealand will release the 2-year Inflation Expectations for the fourth quarter, where the previous reading was 2.9%.

At 13:30 GMT, the U.S. economy will release the annualized Gross Domestic Product for the third quarter, where it’s expected unrevised at 2.5%.

The Personal Consumption for the third quarter is also expected unrevised at 2.4% as well as the Core Personal Consumption Expenditure to hold at 2.1%.

At 19:00 GMT, the Federal Reserve Bank will release its minutes for the Nov. 1-2 FOMC meeting.

Wednesday November 23:

On Wednesday at 13:30 GMT, the U.S. economy will release the Durable Goods Orders for October, which is expected to come at -1.0% from the previous -0.8%.

Also the Personal Income for October will be released at the same time and expected to improve to 0.3% from 0.1% while the U.S. Personal Spending is expected to slow to 0.3% from 0.6%.

The annual Personal Consumption Expenditure Core for October is expected to come at 1.7% compare to the previous reading of 1.6%.

At 13:30 GMT, the U.S. economy will issue its weekly initial claims, where the number of people filing for first-time claims for the state unemployment insurance fell to 388 thousand last week.

Finally, the U.S. economy will release the University of Michigan Confidence for November at 14:55 GMT, where the final reading is expected to come at 64.5 from the prior reading of 64.2.

Thursday November 24:

On Thursday at 21:45 GMT (Wednesday), New Zealand economy will release the Trade Balance for October, where the previous month it recorded a deficit of NZ$ 751 million.

The New Zealand exports for October had a previous reading of NZ$ 3.44 Billion, while the prior reading for the Imports was NZ$ 4.19 Billion.

Friday November 25:

Both economies will not release any data on Thursday, while U.S. markets are still scheduled for an early closing for Thanksgiving Holiday.

Originally posted here