NZD/USD Forecast Dec. 16, 2011, Fundamental Analysis

, as the strong US dollar forced other major currencies to decline with the current risk aversion that controlled the FX market.

The U.S. dollar is still recording profits against the euro and other major currencies, as the EU summit and the ECB policy did not provided strong measures to prevent the debt crisis from spreading to other countries.

The current monetary policy for the RBNZ reduced demand for the Kiwi, as the central bank is comfortable with the current interest rate level which pushed investors to shift their investment to other currencies.

On Friday, the U.S. economy will release the Consumer Price Index for November at 13:30 GMT, where the prior reading was down by 0.1% and expected to come at 0.1%. As for the annual reading it’s expected to remain steady at 3.5%.