By ForexMansion.com
The pair has been traded in to consolidation area during the past week within specific levels in which the pair had traded for more than two weeks.
Increasing demand for both the New Zealand dollar and Australian dollar fueled the pair’s fluctuation; preventing it from taking a specific direction in the market.
This week may see a continuation for the sideways movement in the absence of important fundamentals that could affect the economies. The markets’ focus remains on the latest developments in Japan and the impact of the earthquake that struck the Japanese nation on the March 11, 2011 and the performance of the Japanese economy.
The New Zealand economy will issue data on Monday on the trade balance, which in the case of recovery may support the pair to the downside due to increased demand for the New Zealand dollar.
As for the Australian economy, it will issue the retail sales index which could reflect improvement, and will be able to support the Australian currency.
