By FX Empire.com
The NZD/USD pair slightly advanced with the beginning of the week, but still near its lowest level in eight months. The New Zealand currency lost ground against the greenback during the last period, with the bearish market sentiment in addition to the negative global economy outlook.
The EU debt crisis still has its negative effect on the financial market and on other economies, which fueled fears of the global economy outlook and drove investors to abandon higher-yielding currencies. Nevertheless, hope over some measures to be taken by the EU this week helped a relief rally on Monday with focus on the finance ministers meeting Tuesday and Wednesday in Brussels.
Expectations remain for further losses for the pair, as risk aversion still dominate the FX market and reduce demand for the higher-yielding currencies.
On Tuesday, the U.S. economy will release the Consumer Confidence of November at 15:00 GMT, with a prior reading of 39.8 and it’s expected to come at 43.5. While the House Price Index for September had a prior reading of -0.1%.
Originally posted here
