U.S. Economy Reports Push Down the Australian and NZ Dollar
The Aussie and the kiwi lost ground against major currencies as producer prices and retail sales fell in the United States, changing the speculations about the global crisis that «the worst is behind us».
The world’s largest semiconductor company, Intel, reported less significant earnings in their first quarter results as the S&P 500 Index fell by 0.7%. These results destroyed the rumors that, in the beginning of the week, were indicating an eventual improvement in America’s economy, which could confirm hopes that the international crisis scenario would be already in a process of melioration.
After the bullish rally which occurred during the past few days, analysts said that a correction process for the AUD and NZD could be expected, mainly taking into consideration the weakened U.S. retail sales data. Being the news from U.S. not the only factor that forced the Aussie and the kiwi down, commodity prices also showed a fall, creating all the necessary conditions for profiting with the major currencies traded with the AUD and NZD.
The AUD/USD traded at 0.7199, falling more than 80 pips in the intraday comparison. The NZD fell even more against the USD, being the pair traded at 0.5782 from yesterday’s level of 0.5880. The NZD/JPY was traded at 57.29, a significant decline from 58.65.
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