The NZD/USD continues to trade with an upside bias to the strength of kiwi amid a strong risk appetite and a positive outlook for commodities which is also accompanied by prevailing dollar weakness.
The Reserve Bank of New Zealand will delay raising interest rate till the second half of 2011. Consumer spending and home sales remain weak due to the worst earthquake in 8 decades that hit the economy by the end of last year, encouraged policy makers to keep rates low to support the economy. This will keep the volatility intact as seen on Monday with New Zealand markets closed on Easter Monday.
We can see the major pairs in the FX market are trading in a slim range due to the Easter Holiday.
On Tuesday the New Zealand economy will release both of NBNZ activity outlook and NBNZ business confidence reading for the month of April at 01:00 GMT, where the previous reading for the nation’s activity outlook was 14.7 in March.
The U.S economy will release the consumer confidence for the month of April at 14:00 GMT that is expected to show an increase to 64.5 from 63.4 in the previous month.
Originally posted here
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