NZD/USD Forecast Dec. 08, 2011, Fundamental Analysis

The NZD/USD pair traded in a narrow range early Wednesday near its highest level in three weeks, as the greenback lost momentum against the Kiwi and other majors as the risk appetite strengthens.

The US dollar dropped against the euro as expectations are for the EU leaders to boost the stimulus plan in order to provide more liquidity to the financial system and stem the debt crisis.

The current optimism in the financial market helped the New Zealand dollar to maintain gains against the US dollar, before the RBNZ rate decision which is expected to keep the rate steady at 2.50%.

On Thursday at 21:45 GMT (Wednesday), the New Zealand economy will issue the Manufacturing Activity for the third quarter, where it had a previous reading of 2.1%.

At 23:00 GMT, the annual QV House Prices will be released, where it had a prior reading of 1.2%.

At 13:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 402 thousand last week.

The Wholesale Inventories for October will be published at 15:00 GMT, where it’s expected to come at 0.3% compare to the previous reading of –0.1%.

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