The NZD/USD pair dropped to its lowest level in eight months, with the strong performance from greenback which dominated the FX market last week due to the pessimistic market sentiment and ongoing risk aversion.
Kiwi continued its downside movement against greenback for the fourth straight week as investors abandoned higher yielding currencies and focused on safe haven currencies such as the US dollar.
The latest FOMC minutes showed that the bank’s members considered more easing, which fueled risk aversion driving them to prefer greenback as a safe haven.
On the other hand, the EU debt crisis still has its negative effect on financial markets and on other economies, which fueled fears over the outlook for the global economy and drove investors to abandon higher-yielding currencies.
The NZD/USD pair is still expected to resume the bearishness during the upcoming period, and even with the expected upside recovery on a needed correction, the overall outlook till now remains bearish.
Major highlights for this week that will affect the NZD/USD pair’s trading:
Monday November 28:
On Monday at 00:00 GMT, New Zealand will release the NBNZ Activity Outlook for November, where it had a previous reading of 26.1. While the NBNZ Business Confidence for November had a prior reading of 13.2.
On Monday at 15:00 GMT, the U.S. economy will release the New Home Sales for October where it’s expected to drop by 1.0% to 310 thousand from 313 thousand.
Tuesday November 29:
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%.
Wednesday November 30:
On Wednesday at 21:45 GMT (Tuesday), New Zealand will release the Building Permits for October which had a previous reading of -17.1%.
The U.S. economy will release the ADP employment change for November at 13:15 GMT, where it’s expected to come at 128 thousands from the previous reading of 110 thousands.
The U.S. Non-Farm Productivity for the third quarter is to be released at 13:30 GMT and expected to come at 3.1% inline with the previous reading, and the Unit Labor Costs for the third quarter is also expected unchanged at -2.4%.
The Chicago Purchasing Manager for November will be released at 14:45 GMT and is expected to come at 58.5 from the previous 58.4. At 15:00 GMT the Pending Home Sales will be published and it’s expected to remain flat from the prior -4.6%.
Thursday December 01:
On Thursday at 00:00 GMT New Zealand will release the ANZ Commodity Price for November which had a prior reading of -3.5%.
At 13:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 388 thousand last week.
The U.S. Construction Spending for October will be released at 15:00 GMT and it’s expected to come at 0.2% inline with the previous.
The ISM Manufacturing Survey for November will be published at 15:00 GMT, with a previous reading of 50.8 and it’s expected to improve to 51.5.
Friday December 02:
The United States of America will release the infamous jobs report on Friday at 13:30 GMT which is expected to show that the U.S. economy added 116 thousand jobs during the month of November compared with the previous reading of 80 thousand jobs. Unemployment during the month of November is expected to remain steady at 9.0%.
Originally posted here
