By ForexMansion.com
The pair continues to trade in a specific range for more than two weeks, as each of the Australian dollar and New Zealand dollar recover against the U.S. dollar, which is difficult to find a clear direction for theAUD/NZD pair.
On the other hand, the Australian dollar could win the battle and tends to rise due to the optimistic outlook for the Australian economy on the contrary to the New Zealand economy which is witnessing a state of vulnerability after the earthquake that hit New Zealand in December.
There will be no economic data from the Australian economy on Tuesday. This may lead the movement of the pair to rely on the movement of the New Zealand dollar and the current market sentiment.
On Tuesday in New Zealand (21:45 GMT) we are expecting the trade balance data for the month of February which is expected to show a surplus of NZ$270 million widening from the previous surplus of NZ$11 million.
Exports are expected to rise further, especially with the improved commodities prices and demand, expected at NZ$3.50 billion from NZ$3.29 billion.
Imports are also expected to have moved higher as New Zealand starts to rebuild and recover from the earthquake. Imports are expected at NZ$3.30 billion from NZ$3.28 billion.
This improvement in the trade surplus may support the New Zealand currency, which could push the pair south in favor of the New Zealand dollar.
Originally posted here
