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The AUD/NZD pair rebounded again with the beginning of this week, where the Australian dollar found support against its U.S. counterpart after the Chinese data, which indicate the Chinese economy recorded growth more than expected during the first quarter of the year. Further support for aussie is seen ahead of the RBA minutes which investors hope will include hawkish comments.
Australian iron ore and coal exports will accelerate in the upcoming period amid global economic recovery. The demand for Australian currency will strengthen as the nation produces about 20% of the world’s iron ore, which climbed 4.3%, while coal-export prices jumped 25%.
The New Zealand economy reported that its consumer price index has retreated to 0.8% during the first three months of 2011, slower than economists’ estimates for a 1.0 percent advance.
Investors increased their bets that the Reserve Bank of New Zealand won’t hike interest rate during the upcoming period, as inflation rates are still in the safe zone.
On Tuesday, the Australian economy will release its first set of fundamentals with the Reserve Bank of Australia minutes for the month of April at 01:30 GMT, which has a strong impact on the market, where indications for a hold on rates for now from the RBA will send aussie down violently and an indication of a move soon and fear of inflation will trigger strong gains for aussie and drive the pair higher.Â
Originally posted here
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