By ForexMansion.com
The NZD/USD dropped on Wednesday as the New Zealand economy business confidence plummeted by 8.7%, the second largest one-month drop in business confidence in the history of the survey.
Nevertheless, Kiwi recovered and touched a one-month high against its major counterpart the US dollar, as gains in stocks around the world boosted demand for higher-yielding currencies.
Friday, the market will focus on the awaited labor figures from the US economy. Unemployment during the month of March due at 12:30 GMT is expected to remain unchanged at 8.9%.
Moreover, the Superpower’s economy will release its construction spending index for the month of March, which is expected to show some improvements, better than the previous reading.
Projections indicate that the pair will retreat, as the improvement of U.S. data may cause the dollar to recover against the NZ dollar and the market is still focused on the US fundamentals that are expected to confirm the ongoing recovery in the world’s largest economy. Nevertheless, the risk appetite remains strong and the gains might spread unless the figures were a disappointment which will strongly power the dollar.
Originally posted here
