Traders in the currency market will have two key reports to focus on when the Asian session begins later today.  The anticipation has kept the Australian dollar in a relatively tight range against the US dollar in late New York afternoon trade – currently at 1.0436.

A report on business confidence in New Zealand will be the first report currency traders will be scrutinizing at the open.  For the month of October, forecasts are for the report to decline for the third time this year as economic growth slows in the Pacific economy.  Forecasts for economic expansion in the New Zealand economy have been lowered to 1.5% in the year, boosted by evidence of a manufacturing slowdown.  The country’s manufacturing sector showed a decline for the fourth straight month, now remaining just a hair above breakeven.  A lower showing could very well spark near term speculation that the Reserve Bank of New Zealand will keep interest rates on hold till next year.

Australian consumer prices are additionally expected to slow for the third quarter.  The forecasted 0.6% increase is prices is lower than the second quarter 0.9% jump – dragging the annualized consumer inflation measure to 3.5%.  This will be a bit lower than the 3.6% annualized rate seen in the previous quarter, but enough to keep Governor Glenn Stevens convinced of a slowdown in the country’s inflation.  Expect central bankers to keep rates on hold for the rest of the year, bucking speculation of an end of the year rate cut of 25 basis points.

Source:  www.forexmarketshot.com