The AUD/NZD pair stabilized around 1.3330, where the pair couldn't take a clear directionwith the continued rise of both the Australian dollar and New Zealand dollar against the greenback. On the other hand, high commodity prices are increasing demand for both Aussie and Kiwi.
The Australian dollar caught the attention after it recorded a new several years high above 1.0600 versus its U.S. counterpart, after the Australian economy reported accelerating inflation to 5.2% more than expected during the first quarter, adding the central bank will increase rates.
As for the NZD/USD pair, it continued its upside movement for a second day, as gains in the New Zealand commodities prices along with the positive market sentiment supported demand on high yielding currencies to the benefit of kiwi to increase versus major currencies.
On the other hand, Asian stock markets rallied on Wednesday following the footsteps of Wall Street, where the strong housing market data from U.S. economy alongside good earnings improved the risk appetite and increased demand for higher-yielding assets.
The rest of the week has no data from the New Zealand economy or the Australian economy, and the pair's movement is expected to rely on the market sentiment in addition to the performance of each AUD and NZD against the U.S dollar.
High volatility is expected for Thursday with the end of a short week ahead of the long Easter weekend and profit taking might be seen.
Originally posted here
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