AUD/NZD Daily Fundamental Analysis for July 20, 2011

By ForexMansion.com

The AUD/NZD pair stabilized around its lowest level in 11 months, where the Australian dollar remained weak after the RBA's July minutes; while the New Zealand currency remained the favorite currency for traders.

Moreover, the Australian currency (Aussie) has declined slightly against the US major counterpart as the Reserve Bank of Australia reported that the Bank won't increase interest rates until the end of the year because of the current situation in Australia along with the European debt crisis that will affect the economic global stability and the recovery in Australia, the Bank noted that higher Australian dollar has dampened part of economy during the previous period.

The Australian dollar could not keep its gains against the dollar or the yen, as the RBA's dovish stance was not able to give Aussie enough support to face the strong dollar.

The New Zealand dollar continues its upside movement after the strong CPI increased expectations that the RBNZ is to rise the interest rate during the third quarter to tame inflation.

On Wednesday at 00:30 GMT, the Australian economy will release the Westpac Leading Index for May, where the previous reading was 0.2%.

The Australian Consumer Inflation Expectations for July will be released at 01:00 GMT, following the previous 3.3%.

Originally posted here