NZD/USD Forecast Jan. 02, 2012, Fundamental Analysis

The NZD/USD pair dropped last week on the back of the strong US dollar, while the New Zealand economy did not issue any fundamentals which reduced demand for the Kiwi.

The risk aversion helped the greenback to overtake other majors, as demand increased for the dollar after the ECB announced that its balance sheet soared after it lent the financial institutions more money.

The New Zealand economy will not issue any fundamental during this week, in addition to the low volume in the market due to the New Year holiday, which will drag the NZD/USD pair to narrow range trading.

On Monday, both economics will not issue any fundamental due to the New Year holiday, where low volume will dominate the pair’s movement.

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