AUD/NZD Daily Fundamental Analysis for May 12, 2011

By ForexMansion.com

The AUD/NZD pair returned to gains on Wednesday early Asian trades after the Aussie and the Kiwi appreciated versus the U.S. dollar. The pair's movements tend to the upside depending on the strong outlook for the Australian economy compared to New Zealand.

The Australian economy recorded a strong trade surplus during March, where it recorded a surplus of A$1740 million from a previous deficit of A$205 million during February.

On the other hand, Australian employers are expected to hire more workers to meet global demand, which could add more pressure on inflation rates, encouraging the RBA to increase interest rate.

The New Zealand economy showed a number of positive signs as growth is expected to rise to 3.4 percent, doubling over the course of a year and presenting numerous job opportunities.

On Thursday, the New Zealand economy is going to release its Business NZ Performance of Manufacturing Index for April at 22:30 GMT (Wednesday), where the previous reading was 50.1. At 22:45 GMT (Wednesday) food prices index for April will be published, and its prior reading was 0.3%.

As for Australia, they will start Thursday at 01:30 GMT with the jobs figures. The April employment change is expected to have slowed to 17 thousand from 37.8 thousand while unemployment is expected steady at 4.9 percent. 

Originally posted here

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