By FXEmpire.com

Analysis and Recommendation: (close of the Asian session)

The NZD/USD eased against most major currencies overnight, with yesterday’s gains wiped out early in the European session as investors mulled the Reserve Bank’s shift in monetary policy from tightening to neutral.

The kiwi recently traded at 0.8153 down from 0.8165 yesterday; while on the Trade Weighted Index of major trading partners’ currencies it fell to 72.43 from 72.57 previously.

Overseas currency traders appeared to focus on the Reserve Bank’s threat to reconsider its monetary policy stance if the New Zealand dollar continued to appreciate, a sign the central bank is concerned that the kiwi is outstripping its economic fundamentals.

The drop in the kiwi overnight was pared by generally buoyant risk sentiment and an easing of the US dollar following the US Federal Reserve’s hints on further assets buys.

Better-than-expected US home data also outpaced a week-on-week rise in US unemployment benefit claims and a decline in consumer confidence.

Economic Data for April 26-27th, 2012 actual v. forecast

GBP

Nationwide Consumer Confidence

53

42

44

GBP

BBA Mortgage Approvals

31.9K

34.3K

32.8K

GBP

CBI Distributive Trades Survey

-6

-4

0

EUR

German CPI (MoM)

0.1%

0.1%

0.3%

USD

Initial Jobless Claims

388K

375K

389K

USD

Continuing Jobless Claims

3315K

3295K

3312K

USD

Pending Home Sales (MoM)

4.1%

1.0%

0.4%

Apr. 27

JPY

Unemployment Rate

4.5%

4.5%

4.5%

JPY

Tokyo Core CPI (YoY)

-0.5%

-0.4%

-0.3%

JPY

Industrial Production (MoM)

1.0%

2.4%

-1.6%

JPY

Retail Sales (YoY)

10.3%

9.8%

3.4%

JPY

Interest Rate Decision

0.10%

0.10%

0.10%

Economic Events for April 30, 2012 for the Asian and US Markets

13:30 USD Core PCE Price Index

The Core Personal Consumption spending (PCE) Price Index measures the changes in the price of goods and services purchased by consumers for the purpose of consumption, excluding food and energy. Prices are weighted according to total expenditure per item. It measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

14:45 USD Chicago PMI

The Chicago Purchasing Managers’ Index (PMI) determines the economic health of the manufacturing sector in Chicago region. A reading above 50 indicates expansion of the manufacturing sector; a reading below indicates contraction. The Chicago PMI can be of some help in forecasting the ISM manufacturing PMI.

18:45 NZD Labor Cost Index

The Labor Cost Index measures the change in the price businesses pay for labor, excluding overtime. It is a leading indicator of consumer inflation.

21:00 CNY Chinese Manufacturing PMI

China Manufacturing Purchasing Managers Index (PMI) provides an early indication each month of economic activities in the Chinese manufacturing sector. It is compiled by China Federation of Logistics & Purchasing (CFLP) and China Logistics Information Centre (CLIC), based on data collected by the National Bureau of Statistics (NBS).Li & Fung Research Centre is responsible for drafting and disseminating the English PMI report. Every month questionnaires are sent to over 700 manufacturing enterprises all over China. The data presented here is compiled from the enterprises responses about their purchasing activities and supply situations. The PMI should be compared to other economic data sources when used in decision-making.

21:30 AUD House Price Index

The Australian House Price Index (HPI) measures the change in the selling price of homes in the nation’s eight state capitals. It is a leading indicator of health in the housing sector.

Government Bond Auctions (this week)

May 01 09:30 UK Auctions 4.5% 2042 Conventional Gilt

May 02 09:10 Sweden Nominal bond auction

May 02 09:30 Portugal Eur 1.25-1.5bn new Nov 2012 & new May 2013 T-bills

May 02 13:00 3Y Notes on May 08, 10Y Notes on May 09 & 30Y Bonds on May 10

May 02 14:30 Sweden Details T-bill auction on May 09

May 03 08:30 Spain Bono auction

May 03 08:50 France OAT auction

Originally posted here