The AUD/NZD pair witnessed a significant increase during last week and reached its highest level in 4 weeks, as AUD recorded its highest level ever against the greenback, beside the strong gains in commodity prices as the dollar declined.


The annualized CPI in Australia jumped to 3.3% during the first quarter of the year, from 2.7% a year earlier, the fastest pace in five years.


The consumer price index in Australia accelerated in the first quarter of the year, after the natural disasters that hit the nation on January and February, boosting food prices along with escalating violence in the Middle East helped energy bills to increase.


Gold prices jumped last week to record another all time high, as the weakening dollar drove all commodities to earn more gains, which supported the Australian currency against Kiwi.


The RBNZ governor Mr. Alan bollard kept benchmark interest unchanged at 2.50% during the month of April to revive the economy.


Furthermore, the Governor and his board said that the continuing rise for the nation’s currency is “unwelcome” which has negative results on the nation’s exports; also they noted that the outlook for the New Zealand economy remains very uncertain.


The New Zealand monetary policy makers will keep the rates unchanged steady at 2.50% this year due to sluggish economic growth. This fact drags the Kiwi down from its highest level in 36 month against the U.S. dollar, opening the door for more gains for the AUD/NZD pair.


Major highlights for this week that will affect the AUD/NZD pair’s trading:


Monday April 2:


At 23:30 GMT (Sunday) the Australian economy will release the AiG manufacturing index for April where the previous reading came less than 50 at 47.9.


The first quarter house price index at 01:30 GMT that increased by 0.7% in the fourth quarter of 2010. Further the annualized AUD house price index for the year ended March 31, where the previous reading showed an incline by 5.8%.


As for the New Zealand economy, it will release it ANZ commodity price index for April at 01:00 GMT where the previous reading was 4.7%.


Tuesday April 3:


New Zealand Tuesday at 22:45 GMT (Monday) will publish its average hourly earnings for the first quarter, which is expected to ease to 0.5% compared to 0.6%.


The market will be focused on the RBA rate decision, whereas expectations indicate that the RBA will keep the rates unchanged steady at 4.75% though comments from the bank will surely affect aussie strongly, especially as investors expect the bank to result to monetary tightening.


Wednesday April 4:


Australian Wednesday at 23:30 GMT (Tuesday) will release its performance index for the services sector for the month of April, while the March reading was at 46.5.


At 01:00 GMT the Australian economy is to release the home sales index in March that jumped by 0.6% in February.


New Zealand building permits for March will be published at 22:45 GMT (Tuesday) following the previous 9.7% decline.


Thursday April 5:


The Australian building approvals for March will be released at 01:30 GMT after it dropped by 7.4% in February, on the year the index fell the previous month by 21.8%. Retail sales for March are due at 01:30 GMT, where it rose 0.5% in February.


The New Zealand economy will release the employment change during the first quarter at 22:45 GMT (Wednesday), where the previous reading was down by 0.5% as for the annualized reading for the quarter it had a previous reading of 1.3%.


The Unemployment rate in New Zealand for the first quarter is expected to show a drop to 6.7% compare with the previous increase of 6.8%.


Friday April 6:-


Australian Friday at 23:30 (Thursday) AUD performance of construction is due after the previous 39.4 in March.


The New Zealand economy is not scheduled to release any fundamental on Friday.

Originally posted here

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