By FX Empire.com
The NZD/USD pair dropped early morning after the greenback recorded gains against most of its major counterparts, as talks about the delay from the Chinese authorities in taking actions to evaluate the yuan open the way for more gains for the US dollar.
On the other hand, the absence of fundamentals from the New Zealand economy pressured Kiwi to lose more ground against greenback. Also the uncertainty for the global economy did not help offset the dollar gains and despite Asian shares rally on relief in Europe. The political change in Greece and Italy still raises question marks over the ability to contain the crisis and prevent the contagion from further affecting Italy that is too big to fail and will send the global economy and financial stability to a standstill.
On Tuesday, the U.S. economy will release the Producer Price Index for October at 13:30 GMT, where the previous reading was up by 0.8% and it’s expected to drop by 0.2%, while the annual Producer Price Index for October is expected to come at 6.3% from the previous 6.9%.
The Advance Retail Sales for October will be released at 13:30 GMT with a previous reading of 1.1% and it’s expected to retreat to 0.2%.
At 13:30 GMT, the Empire Manufacturing for November will be released, where it’s expected to come at -4 from -8.48. The Business Inventories for September will be released at 15:00 GMT, and it’s expected to come at 0.5% in line with the previous reading.
Originally posted here
