NZD/USD Forecast Dec. 29, 2011, Fundamental Analysis

The NZD/USD pair was able to advance early Wednesday on the back of the weak U.S. dollar, while the thin trading did not support the Kiwi to record more gains against the dollar.

The U.S. dollar traded in a narrow range against most of its major counterparts, due to the absence of the volume in the FX market which reduced demand for the dollar.

On the other hand, the latest U.S. data support the hope that the U.S. economy is gaining momentum, while the ongoing EU debt crisis remains an obstacle in the way of the optimism in the financial market.

On Thursday 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 dropped to 364 thousand last week.

The U.S. economy will issue the Chicago Purchasing Manager for December at 14:45 GMT, where the prior reading was 62.6 and it’s expected to come at 60.2.

At 15:00 GMT, Pending Home Sales for November will be and expected with 1.8% rise after 10.4%.