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The AUD/NZD pair was able to penetrate the consolidation area last week to the downside, supported by the AUD decline with the beginning of the week before the pair stops its downside movements at the level of 1.3364, after the Australian dollar recorded historical highs against the U.S. dollar and Japanese yen.
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. On the other hand, unemployment rates in Australia retreated to 4.9% from 5.0%, which increased the demand for the Aussie on expectations of improved outlook for Australian growth.
Next week will witness a lack of important economic data for the New Zealand economy, so we expect the AUD/NZD pair to rise again due to the records levels achieved by the AUD against major currencies, which increases demand for the Australian currency.
On the other hand, the outlook for the Australian economy is much better than the New Zealand economy, which could support the rise of the pair as a result of the strength Australian dollar compared with the New Zealand dollar. Gold prices also continue to rise, supporting the Australian currency as a result of the direct relationship between them.
Major highlights for this week that will burden the AUD/NZD pair’s trading:
Monday April 11:-
Before the beginning of the day, the New Zealand economy will issue REINZ housing price index for March, which increased by 2.3% to 3192.9 houses.
Tuesday April 12:-
At 00:00 GMT, New Zealand will issue yearly QV house prices for March which had a previous reading of – 1.7%. The food prices index for March will be released at 22:45 GMT, which had a previous reading of 0.1%.
The Australian economy will issue Westpac consumer confidence for April at 00:30 GMT, and the prior reading was – 2.4%. The NAB business conditions for March will be published at 01:30 GMT, which had a previous reading of -2.0, as for the NAB business confidence for March; it had a prior reading of 14.0.
Wednesday April 13:-
The New Zealand economy will release business NZ performance of manufacturing index for February at 22:30 GMT, the previous reading was 53.7. At 17:00 GMT Reserve Bank of Australia’s Stevens will speak in New York City, as the pair could move based on Stevens’s comments.
The rest of the week has no data about the New Zealand economy or the Australian economy, and the pair’s movements is expected to rely on the market sentiment in addition to the performance of each AUD and NZD against the U.S dollar.
Originally posted here
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