By FX Empire.com
The NZD/USD pair fell last week amid risk aversion which controlled the FX market, as EU debt crisis still weighed negatively on financial markets with fears and uncertainty.
However, the New Zealand economy gives some signs of picking up as rising consumer spending and employment add to evidence the nation’s economy grew modestly in the first quarter, buoyed by record-low interest rates and a surge in commodity prices
The market will start the week with reaction to what the leaders announce on Sunday after the October 23 summit, although they are embraced for further delay after Germany and France called for another summit on Wednesday, which might see the delay of the measures, yet in general the market will react mainly to what the leaders say which might provide the guidelines for the measures and accordingly if the measures are strong the risk appetite will return and if not a strong selloff will be evident.
On Monday at 21:45 GMT, New Zealand economy will release the Consumer Prices Index for the third quarter, where it had a previous reading of 1.0% and expected to retreat to 0.7%.
The annual Consumer Prices Index for the third quarter is expected to come at 4.9% compare to the previous reading of 5.3%.
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