By FX Empire.com
The New Zealand’s currency (the Kiwi) fell as Asian stocks extended a global slump, while the demand for New Zealand currency was also curbed as a faltering U.S. recovery and Europe’s debt crisis prompted investors to favor safer bets than emerging-market assets. Nevertheless, as the market recovered into the European session kiwi returned to the upside.
The New Zealand dollar (Kiwi) plunged versus the US dollar after the NZ’s economy reported that its manufacturing volumes dipped for the first time in three quarters and food prices declined.
Still, the market focus remains on Europe and with expectations that a new plan will be presented to help capitalize banks and contain the Greek threat the positive sentiment returned and supported kiwi to the upside.
The NZ performance of manufacturing index for September is due at 21:30 GMT (Wednesday) after 52.9 in August.
The U.S. economy will release the Trade Balance for August at 12:30 GMT, where it’s expected to show a widening deficit to $46.0 billion from $44.8 billion.
Also at 12:30 GMT, the 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 401 thousand last week.
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