The NZD/USD pair dropped last week to its lowest level in three weeks, as the New Zealand fundamentals and the current EU crisis encouraged investors to abandon Kiwi.
The New Zealand economy reported a drop in building permits index in September by more than both the prior reading and the analysts’ forecasts.
On the hand, the Chinese purchasing manager index (PMI) during October showed some weakness, which could reduce demand for New Zealand’s currency, where the Chinese market is the largest market for NZ’s products.
The FOMC decisions surprised no one, where the Fed maintained the interest rate between 0.0% and 0.25%.
The FOMC members decided to leave the Operation Twist program unchanged, in addition revised growth projections lower due to the downside risks for the economic outlook amid the current European debt crisis.
The greenback advanced against the Kiwi after the FOMC decision, where investors decided to give the US dollar another chance until the U.S. officials give a clear decision regarding the third round of quantitative easing.
Major highlights for this week that will affect the NZD/USD pair’s trading
Monday November 07:
The U.S. economy will release the Consumer Credit for September at 19:00 GMT, where it’s expected to come at $5.00 billion from the previous reading of -$9.501 billion.
Tuesday November 08:
Both economies will not release any data on Thursday, where the pair’s movements will depend on the market sentiment.
Wednesday November 09:
On Wednesday at 20:45 GMT (Tuesday) the New Zealand economy will release the annual House Prices for October, which had a previous reading of 0.7%.
The U.S. economy will release the Wholesale Inventories for September at 14:00 GMT, where the prior reading was 0.4% and it’s expected to come at 0.6%.
Thursday November 10:
On Thursday at 20:30 GMT (Wednesday) New Zealand will release the Business NZ Performance of Manufacturing Index for October, where the prior reading was 50.8.
The ANZ Consumer Confidence Index for November will be released at the same time, where it had a previous reading of 112.2
At 12:30 GMT, the U.S. economy will release the Import Price Index for October, which had a previous reading of 0.3% and it’s expected to come at 0.3%, on the other hand the annual Import Price Index had a prior reading of 13.4%.
Trade Balance for September will be released at the same time, where the previous deficit was $ 45.6 billion and expected to widen to $46.0 billion.
At 12:30 GMT, the U.S. economy will release its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance dropped to 397 thousand last week.
Friday November 11:
On Friday at 13:55 GMT, the U.S. economy will issue the University of Michigan Confidence for November, where it’s expected to come at 61.0 from the previous 60.9.
