By FX Empire.com
The New Zealand dollar declined against the American dollar after the nations reported that its performance of services index slowed during September, yet generally was still supported with the improved risk appetite in the market.
New Zealand’s currency (Kiwi) continued its upside movement against the American currency as the investors’ confidence increased over the outlook for the global economy and financial stability after the G20 which ensured that the debt crisis is to be contained.
Moreover, the G-20s ministers put more pressure on European leaders to unveil a clear and comprehensive strategy to contain the two-year old sovereign debt crisis by the coming European summit.
New Zealand is benefiting from demand from developing nations, where the demand for raw materials is increasing, especially from China, which is supplying its rebounding manufacturing sector, supporting the Kiwi’s upside movement.
On Tuesday the market will focus on the Chinese GDP that will have a strong impact on Kiwi. Growth is still expected above 9.0% at 9.3% slowing from 9.6% but still strong which should limit a strong downside pressure yet further slowing will be downside pressure on the market. The data from China is due at 02:00 GMT.
At 12:30 GMT, the U.S. economy will issue the Producer Price Index for September where it’s expected to come at 0.2% from the prior reading of 0.0%, while the annual Producer Price Index is expected to ease to 6.4% from 6.5%.
The U.S. Net Long-term TIC Flows for August will be released at 13:00 GMT, where the previous reading was $9.5 billion, as for Total Net TIC Flows it recorded net selling of $51.8 billion the previous month.