AUD/NZD Daily Fundamental Analysis for July 22, 2011

The AUD/NZD pair dropped early Thursday to trade around its lowest level in eleven months, theNew Zealanddollar was able to keep its gains against the greenback due to the cheerful outlook for theNew Zealandeconomy, which enabled the Kiwi to dominate the AUD/NZD pair’s movement.

On the other hand, the Australian economy released negative data regarding the business confidence which slumped to 6 during the 2nd quarter from 11 in the first quarter, damping demand for the Australian dollar.

At the meantime, New Zealand’s consumer confidence rose to a five-month high in June, adding to signs of a recovery in regions outside earthquake-damaged Christchurch.

On Friday at 01:30 GMT, the Australian economy will release the Import price index for the second quarter, where it’s expected to show a drop of 1.1% from the previous rise of 1.4%.

On the other hand, the Export price index for the Second quarter will be released at 01:30 GMT, with a prior reading of 5.2% and it’s expected to come at 5.0%.