NZD/USD Forecast Dec. 15, 2011, Fundamental Analysis

The NZD/USD pair reached its lowest level in two weeks with the beginning of Wednesday’s session, as the higher-yielding Kiwi lost ground against other major currencies with the risk aversion dominating the FX market.

On the other hand, the US dollar reached its highest level in eleven months against the euro, as a safe haven currency with the ongoing developments in the EU sovereign debt crisis which eroded risk appetite in the financial market.

The FOMC kept the policy on hold, while they did not signal the third round of quantity easing which supported the greenback against most of its major counterparts.

On Thursday, the U.S. economy will release the Producer Price Index for November at 13:30 GMT where it’s expected to come at 0.2% from the previous reading of -0.3%. The annual Producer Price Index is expected to rise to 6.0% from the previous reading of 5.9%.

The U.S. Current Account Balance for the third quarter will be up at 13:30 GMT and the deficit is expected to narrow to $107.7 billion from the previous deficit of $118.0 billion.

The Empire Manufacturing Index for December will be released at 13:30 GMT where it’s expected to come at 2 from the prior reading of 0.61.

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 381 thousand last week.

The Net Long-term TIC Flows for October will be up at 14:00 GMT, where the previous reading was $68.6 billion, as for the Total Net TIC Flows it had a previous reading of $57.4 billion.

The U.S. Industrial Production for November will be released at 14:15 GMT, where it’s expected to come at 0.2% from the previous of 0.7%. The Capacity Utilization for November is expected to come at 77.9% from the prior 77.8%.

The Philadelphia Fed index is due at 15:00 GMT for December and expected to rise to 5.0 from 3.6.