Last week witnessed a significant drop in the AUD against the New Zealand dollar,where the pair reached its lowest level in 7 weeks. The New Zealand dollar rose against the U.S. dollar to reach the highest levels in 5 months, while the Australian dollar remains stable against greenback.
Some Fed policy makers indicated that rising inflation rate is transitory, which could prevent them from hiking interest rates following ECB. This fact badly affects the greenback, which supported the NZD against the dollar and increased downside momentum for AUD/NZD pair.
The Reserve Bank of Australia kept the interest rates steady at 4.75% due to concerns about the negative impact of natural disasters on the Australian economic growth rates.
The New Zealand economy will release the services index for March on Monday at 22:30 GMT, after the previous reading of 50.8. The consumer price index for the first quarter will be released at 22:45 GMT and the previous reading was 2.3%, as for the annual reading it had a previous reading of 4.0%.
Originally posted here
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