By FX Empire.com

The NZD/USD pair reached its lowest level in four weeks, as risk aversion and the uncertainty about the global economy reduced demand for higher yielding currencies such as Kiwi.

The New Zealand dollar dropped for the second week against the dollar with the Asian stocks slump, where the Kiwi lost the momentum recently due to the uncertainty regarding the global economy outlook.

Also the Chinese trade surplus fell below expectations in October, which reduced demand on the Kiwi, where china is the biggest trade partner for New Zealand.

Expectations refer to further losses for the pair during the upcoming period, since the EU crisis and the U.S. economy slowdown are still the dominant fear, which will drive investors to shift to the lower-yielding currencies such as the dollar as a safe haven.

Major highlights for this week that will affect the NZD/USD pair’s trading

Monday November 14:

On Monday at 21:30 GMT (Sunday), New Zealand will issue the Performance Services Index for October, where it had a previous reading of 53.2.

At 21:45 GMT the New Zealand economy will issue the Retail Sales excluding Inflation for the third quarter, where it had a prior reading of 0.9%.

Tuesday November 15:

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.

Wednesday November 16:

The U.S. economy will release the Consumer Price Index for October at 13:30 GMT, where the prior reading was 0.3% and expectations refer to 0.0%, while the annual CPI is expected to come at 3.6% from the previous 3.9%.

At 14:00 GMT the Net Long-term TIC Flows for September will be released, where it had a previous reading of $57.9 billion, as for the Total Net TIC Flows it had a previous reading of $89.6 billion.

The Industrial Production for October is due at 14:15 GMT and expected to come at 0.4% from the previous 0.2%, while the Capacity Utilization is expected to come at 77.7% from 77.4%.

Thursday November 17:

On Thursday at 21:45 GMT (Wednesday), the N.Z. economy will release the Producer Prices- Inputs for the third quarter, where it had a prior reading of 0.9%, while the Producer Prices- Outputs had a previous reading of 1.4%.

The U.S. data will start at 13:30 GMT with the housing starts for October which is expected to drop to 610 thousand from 658 thousand and Building Permits on the other hand to rise to 600 thousand from 594 thousand.

At the same time we have the weekly jobless claims for the week ending November 11 after last week they unexpectedly declined to 390 thousand.

The data will end with the Philadelphia Fed Index for November at 15:00 GMT which is expected to improve to 10.0 from 8.7.

Friday November 18:

The United States will end the week at 15:00 GMT with the Leading Indicators for October which are expected to improve to 0.5% from 0.2%.

Originally posted here