The AUD/NZD pair witnessed a significant drop during last week, as NZD recorded its highest level in 4 months against the greenback, while the Australian dollar experienced stability versus its American counterpart.
The Reserve Bank of Australia kept interest rates steady for fourth consecutive month at its highest level of 4.75% after sluggish inflation rates, noted that higher currency value supported the economy to contain inflation rates at secure levels during the first three month of the year.
The median expected inflation rate in Australia retreat to 3.5% in April from a previous increase of 3.6%, where the RBA wouldn't have to hike interest rate again during the upcoming period.
The New Zealand economy will get a strong push during the next period from higher exports that will give support the nation's currency, fueling inflation rates which may increase the RBNZ's intervention to curb inflation pressures through raising the benchmark interest rate.
The absence of the New Zealand economic data last week has worked on benefiting the NZD, as the AUD/NZD pair movements depended on the market sentiment which supported the New Zealand dollar.
Major highlights for this week that will affect AUD/NZD pair's trading:
Monday April 18:
The New Zealand economy will release performance services index for March at 22:30 GMT, after the previous 50.8. 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:
The Australian economy will release the Reserve Bank of Australia board minutes for the month of April at 01:30 GMT, which has a strong impact on the market.
Wednesday April 20:
At 03:00 GMT, the New Zealand economy will issue ANZ consumer confidence index for April.
Australia is to release the leading index for the month of February at 00:30 GMT that showed a drop by 0.1% in January.
Moreover, the Australian economy continues releasing important data, where it will present the quarterly import price index for the first three months of 2011 at 01:30 that dropped by 3.8% in the quarter of September to December in 2010 and Exports price index after the reported drop by 8.1% a quarter earlier.
Australia's producer price index (PPI) (1Q) will issue at 01:30, where the previous reading rose by 0.1% during the fourth quarter of 2010, while annualized PPI is to release for the year ended March 31, after an increase by 2.7%.
The rest of the week has no data from the New Zealand or the Australian economies, and the pair's movements is expected to rely on the market sentiment in addition to the performance of each AUD and NZD against the U.S dollar.
Originally posted here
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