NZD/USD Forecast DEC. 30, 2011, Fundamental Analysis
The NZD/USD pair retreated to its lowest level in a week, after the ECB announced that its balance sheet soared after it lent more money to the financial institutions, which reduced confidence in the financial market.
The US dollar was able to record gains against other majors after the ECB announcement, where risk aversion returned to the FX market and increased demand for lower-yielding assets.
On the other hand, theNew Zealanddollar did not find any support against the greenback, due to the absence of fundamentals and the thin trading which accompanied the Kiwi all the week.
On Friday, both economies will not issue any fundamentals, where the pair’s movement will depend on the current market sentiment.