NZD/USD Weekly Forecast Jan. 16-20, 2012, Fundamental Analysis

NZD/USD Weekly Forecast Jan. 16-20, 2012, Fundamental Analysis
NZD/USD Weekly Forecast Jan. 16-20, 2012, Fundamental Analysis
The NZD/USD pair advanced last week to its highest level in two months, as the New Zealand dollar was the biggest winner between other major currencies, where the US dollar has lost some ground against other major currencies.

The New Zealand dollar gained more momentum against the greenback on the back of the fluctuations in the U.S. economic situations, which reduced demand for the greenback and opened the way for more gains for the New Zealand dollar.

The ongoing debt crisis in the euro-zone dominated the market sentiment and again pressured kiwi to the downside with the end of the week, where the current move in the NZD/USD pair could be a correction, since the main trend still to the downside.

Also the Chinese economy will release its GDP data for the fourth quarter during the week, where the growth data will have its toll on the NZD/USD pair since China is number one trade partner for New Zealand.

Major highlights for this week that will affect the NZD/USD pair’s trading:

Monday January 16:

On Monday, the New Zealand economy will release the REINZ Housing Price Index for December, where the previous reading was 3304.3, while the REINZ Housing Price Index had a prior reading of 1.1%.

Tuesday December 17:

The U.S. Empire Manufacturing for January will be released at 13:30 GMT, where the previous reading was 9.53 and expected to come at 10.50.

Wednesday December 18:

At 13:30 GMT, the U.S. economy will release the Producer Price Index for December, where the prior reading was 0.3% and expected to come at 0.1%, on the other hand the annual Producer Price Index had a prior reading of 5.7% and it’s expected to come at 5.1%.

The Total Net TIC Flows for November will be released at 14:00 GMT, with a previous reading of -$48.8 billion, while the Net Long-term TIC Flows had a previous reading of $4.8 billion.

The U.S. Industrial Production for December will be released at 14:15 GMT, and expected at 0.5% after 0.2% drop. The Capacity Utilization for December had a prior reading of 77.8% with expectations to rise to 78.1%.

Thursday December 19:

On Thursday at 21:45 GMT (Wednesday), New Zealand will release the Consumer Prices Index for the fourth quarter, where it’s expected to come at 0.4% in line with the previous quarter.

The annual Consumer Prices Index for the fourth quarter is expected to come at 2.6% from the prior reading of 4.6%.

At 00:00 GMT, the ANZ Consumer Confidence Index will be released, with a prior reading of 108.4.

On Thursday at 13:30 GMT, the U.S. economy will release the Consumer Price Index for December, where the prior reading was 0.0% and it’s expected to come at 0.1%. The annual CPI had a prior reading of 3.4% and expected to come at 3.1%.

The Housing Starts for December will be released also at 13:30 GMT, where the previous reading was up by 9.3% at 685 thousand, and expected to remain unchanged at 685 thousand. The U.S. Building Permits are expected with 0.7% drop to 675 thousand from the prior reading of 681 thousand.

The weekly initial claims are also due at the same time, where the number of people filing for first-time claims for the state unemployment insurance increased to 399 thousand last week.

Friday December 20:

The U.S. economy will issue the Existing Home Sales for December, where the previous was at 4.42 million and expected to rise 3.7% to 4.65 million.

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