AUD/NZD Daily Fundamental Analysis for June 30, 2011

By ForexMansion.com

The AUD/NZD pair continued its downside movement for the third straight day, while Aussie and Kiwi soared back against the dollar as market sentiment improved to increase demand for the high yielding currencies.

Consumer confidence in U.S. for June dropped to its lowest level in seven months, fueling fears over the U.S. economy outlook and the global recovery.

As a result, the greenback retreated against its major counterparts, opening the way for the Australian dollar to advance to its highest level in five days. Despite the Aussie soaring against dollar, the AUD/NZD pair maintained its downside movement as the cheerful outlook for the New Zealand economy supported the New Zealand dollar against the Aussie.

On Thursday at 22:45 GMT (Wednesday) the NZ economy is going to release its building permits index for the month of May, while the index has recorded a drop by 1.6% a month earlier.

Moreover, New Zealand will continue the fundamentals with the NBNZ activity outlook indicator during June at 01:00 GMT after it reached 39.7 in May, also the NBNZ business confidence index that has a medium effect on the nation's currency, as prior reading was at 38.3 in May.

Further, the annualized money supply M3 is due at 03:00 GMT, whereas the previous inclined 5.7%.

The Australian economy is to report the private sector credit reading for the month of May at 01:30 GMT, which was flat in April. 

Originally posted here