NZD/USD Forecast Dec. 06, 2011, Fundamental Analysis

The NZD/USD pair was little changed with the beginning of the week, as it traded near its highest level in two weeks after the US dollar dropped against most of its major counterparts last week.

The federal currency lost ground against other major last week due to the improved risk appetite which increased demand for higher-yielding currencies, where the U.S. unemployment rate dropped unexpectedly during November to 8.6% supporting the confidence in the market.

As for the EU debt crisis update, the new Italian prime minister announced a plan to cut the ongoing nation’s debt which also uplifted hopes as investors’ confidence is rising on hopes that the EU summit this week will deliver strong measures to contain the crisis.

The Italian plan in addition to the cheerful U.S. data helped risky assets and accordingly supporting equities and commodities alongside the New Zealand dollar.

Both economies will not release any fundamentals on Tuesday, where the pair’s movements will depend on the market sentiment.

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