The New Zealand dollar recorded the highest level in 4 weeks at 0.7956 against its US counterpart, as the Chinese fundamentals supported expectations for higher demand for New Zealand exports which bolstered kiwi.
On the other hand, the New Zealand gross domestic product expanded during the quarter of September to December, more than forecasts as the nation’s exports soared along with stronger construction that helped the economy to escape a recession, after the quake that hit the nation on February 22.
The New Zealand economy will get a strong push during the next period from higher export prices that will support the nation’s currency, fueling inflation rates which may increase the RBNZ’s intervention to curb inflation pressures through raising the benchmark interest rates.
In the week ahead, we expects the NZD/USD will see a slight retreat as a lack of important economic data for the New Zealand economy along with the market focus on US fundamentals which increases demand for greenback.
At the meantime, the market sentiment maybe the main engine for the NZD/USD pair’s movement.
Major highlights for this week that will burden the NZD/USD pair’s trading:
Monday April 18:
The New Zealand economy will release the services index for March at 22:30 GMT. The consumer price index for the first quarter will be released at 22:45 GMT and the previous reading was 2.3%, as for the annual reading it had a previous reading of 4.0%.
Tuesday April 19
At 12:30 GMT the U.S. economy will release building permits for March, and expected to come at 540 thousand compare with the previous of 517 thousand. The housing starts for March is also expected with a rise from the previous 479 thousand to 520 thousand which will be a boost for the sentiment and help kiwi gain on risk demand.
Wednesday April 20
At 03:00 GMT, the New Zealand economy will issue ANZ consumer confidence index for April, which had a previous reading of 101.4 declining by 6.2%.
On the other hand, The U.S economy is expected to release existing home sales for March at 14:00 GMT, the reading is expected to come at 5.00 million with 2.5 percent rise from the previous 4.88 million.
The U.S. housing data is anticipated to show some improvement during March, which could help the dollar rise on its fundamentals yet mainly kiwi with the risk appetite remain strong.
Thursday April 21
At 12:30 GMT the U.S economy will release its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance has reached 412 thousand.
The U.S. house price index for February will be issued at 14:00 GMT. The leading indicators index for March is expected to retreat to 0.2% from the previous increase of 0.8%.
Finally, U.S. economy will release Philadelphia Fed Index for April, which expected to slow to 37.0 from the previous 43.4.
Friday April 22
The week ends on a short note as the market will be out with central banks holiday on Good Friday.
Originally posted here
Read more about forex technical analysis, forex fundamental analysis and forex news on ForexMansion.com
About ForexMansion.com:
www.ForexMansion.com is a part of the Finance Mansion Network which operates global financial websites. Our goal is to provide our readers with the most accurate, quality and up-to-date technical analysis, fundamental analysis and news in order to assist them in making the right financial decisions.
The Finance Mansion Network includes www.FinanceMansion.com,www.ForexMansion.com, www.StocksMansion.com, www.CommoditiesMansion and many more.
