September 4, 2012
Kiwi gapped down over the weekend and continued to slide down the charts on Monday, causing NZD/USD to close at .7974, 34 pips down from its .8008 open price. Will it have a chance to bounce back today?
Perhaps the Kiwi was still reeling from weaker than expected Chinese manufacturing PMI, which is also negative for the Australian dollar, released over the weekend. New Zealand didn't release any economic figures yesterday so the Kiwi was probably affected by weaker than expected retail sales data from Australia as well.
There are no economic reports on New Zealand's schedule today, which means that the Kiwi could take its cue from Australian data again. Bear in mind that the RBA is set to make its monetary policy decision at 4:30 am GMT today and, if the central bankers sound dovish about their economic prospects, the Kiwi could take a hit along with the Aussie.
"The only cable I watch is the pound baby."