The AUD/NZD pair failed to exit the consolidation area, as the upside movement has lost momentum, forcing the pair to back the previous levels of trading.
The Australian dollar dropped sharply against greenback after the Australian economy released its retail sales, which unexpectedly dropped during the month of March, increasing expectations that the Reserve Bank of Australia will delay raising interest rates.
On the other hand, New Zealand’s currency strengthened after a government report showed employers added more jobs than forecasted, suggesting a recovery was underway before the February earthquake dented growth.
The New Zealand unemployment rate retreated to 6.6% during the first quartet, after the prior increase of 6.8%. The cheerful data helped Kiwi to cover some of its losses against the greenback, and opened the door for theNew Zealand dollar to dominate the AUD/NZD pair movements, driving the pair to record its lowest level in 6 days.
Australian Friday at 23:30 (Thursday) AUD performance of construction index will be release, while the previous reading was 39.4 in March. New Zealand is not going to issue any fundamental on Friday and we expect the volatility to be high with both currencies performance versus greenback as the focus shifts to the state of growth in the US economy with the labor data.
Originally posted here
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