By FX Empire.com
The New Zealand dollar continued to swing between gains and losses amid the foggy outlook for the European debt crisis and global growth, yet the sentiment started to gradually improve with leaders’ pledges to contain the crisis.
On the other hand, the euro leaders pledged to introduce more measures to contain the European debt crisis and prevent a new financial meltdown by offering more support to banks which for now eased the worries in the market.
The focus remains on the debt crisis and especially with the improvement seen in the sentiment in the past week. This week the focus might return on growth with the GDP from China and heavy housing and industrial data from the United States.
Investors will eyes the developments in the euro area and whether they release concrete measures on how they will contain the crisis and all those factors will fuel heavy NZD/USD volatility.
Major highlights for this week that will burden the NZD/USD pair’s trading
Monday October 17:
The New Zealand economy starts the data with the September performance services index at 21:30 GMT (Sunday) after it recorded 53.9 in August.
The U.S. economy will release the Empire Manufacturing survey for October at 12:30 GMT where the index is expected to improve to -4.0 from -8.82.
The Industrial Production for September will be released from the U.S. economy at 13:15 GMT and expected to maintain the same expansionary pace as the previous month of 0.2%. On the other hand, the Capacity Utilization is expected to rise to 77.5% from 77.4%.
Tuesday October 18:
On Tuesday at 12:30 GMT, the U.S. economy will issue the Producer Price Index for September where it’s expected to come at 0.2% from the prior reading of 0.0%, while the annual Producer Price Index is expected to ease to 6.4% from 6.5%.
The U.S. Net Long-term TIC Flows for August will be released at 13:00 GMT, where the previous reading was $9.5 billion, as for Total Net TIC Flows it recorded net selling of $51.8 billion the previous month.
Wednesday October 19:
The U.S. economy will issue the Consumer Price Index for September at 12:30 GMT, where it’s expected to come at 0.3% from the previous reading of 0.4%, as for the annual Consumer Price Index it’s expected to hold at 3.8%.
The U.S. Housing Starts for September will be released as well at 12:30 GMT with and expected to rise to 595 thousand by 3.9% from the previous 571 thousand. The Building Permits on the other hand are expected with a drop by 2.4% to 610 from 620 thousand.
Thursday October 20:
At 21:45 GMT (Wednesday) NZD net migration S.A. is expected to increase in September after it inclined to 200 in August.
On Thursday at 12:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 404 thousand last week.
The Leading Indicators for September will released at 14:00 GMT and expected to slow to 0.2% from 0.3%. The Philadelphia Fed index is also due at 14:00 GMT and expected to improve to -9.5 from -17.5.
As for the Existing Home Sales for September it’s expected with a drop of 2.65% to 4.91 million from 5.03 million.
Friday October 21:
The New Zealand’s economy continues releasing fundamental data, where the economy will issue the credit card spending S.A. for September at 02:00 GMT after it dropped by 1.0% and inclined by 4.7% on the year.
Read more daily and weekly Forex Fundamental Analysis here!
