The AUD/NZD pair dropped last week due to the strong New Zealand currency, while the Aussie lost ground against the greenback with the gloomy outlook about the global recovery.
The Australian dollar retreated against the US dollar after the Federal Reserve revised lower their growth projections for this year, increasing risk aversion, and the RBA minutes hinted steady rates for a while as the global recovery outlook is uncertain and the debt crisis is weighing on stability.
The greenback advanced against other currencies as a safe heaven, as investors reduced demand on high yielding currencies after the uncertainty about the global recovery.
The AUD/NZD pair is expected to bounce back to the upside during the coming period, as the Australian dollar succeeded to keep its gains against most of its major counterparts due to the high yield advantage with rate at 4.75% which support aussie against other majors.
At 22.45 GMT (Sunday) New Zealand is to start the week by releasing the trade balance for May, after the trade balance has recorded a surplus 1.113 billion in April.
Originally posted here
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