FXEmpire | May 18 2012 2:19 EDT
Analysis and Recommendation: (close of the Asian session)
The NZD/USD is following its neighbors, falling on market sentiment and risk aversion. The pair are trading at 0.7560.
The kiwi dollar dropped after Moody’s cut the ratings on Spanish banks amid speculation Europe’s debt crisis is spreading, sapping investors’ appetite for higher-yielding, or riskier, assets.
The NZD fell as low as 0.7564 this morning.
That’s the lowest the kiwi has fallen since December 20. It traded at 0.7562 at 5pm. The New Zealand dollar is poised for a 3.5% decline this week after Moody’s downgraded 16 Spanish banks including, recently nationalized Bankia SA. Nine firms were cut three notches, while seven were kept on review.
The main drivers for the cuts included rising loan defaults and the renewed risk of a recession.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Economic Data May 17, 2012 actual v. forecast
Foreign Securities Purchases
Initial Jobless Claims
Wholesale Sales (MoM)
Continuing Jobless Claims
Mexican GDP (YoY)
Philadelphia Fed Manufacturing Index
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
Click here a current NZD/USD Chart.
Originally posted here