NZD/USD Fundamental Analysis December 18, 2012, Forecast

Analysis and Recommendation:

The NZD/USD followed the Aussie downward this morning as the US dollar climbed. The pair dipped 22pts to trade at 0.8442. The New Zealand economy slowed to a 0.5 per cent pace in the third quarter, from 0.6 per cent three months earlier, as retail spending fell and agricultural production eased from its first-half highs, offsetting a strong pickup in construction activity. Although today’s release of Westpac Consumer Sentiment index shows a climb in overall confidence, showing that global sentiment is turning more positive after strong data from the US and China. As the two largest economies show a turn around which might carry the rest of the international markets back from recession, traders continue to look for more risk. As soon as the US fiscal cliff is passed markets we should see strong positive moves in the currency markets.

Data is expected to show the current account deficit widened to $4.83 billion in the three months ended September 30 from $1.8 billion in the second quarter. The annual deficit narrowed to $9.83 billion, or 4.8 per cent of GDP, from $10.1 billion, or 4.9 per cent.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data December 17, 2012 actual v. forecast

 

Upcoming Economic Events that affect the AUD, NZD, JPY and USD

Government Bond Auction

Date Time Country 

Dec 18 01:30 Japan 

Dec 18 09:30 Spain 

Dec 18 10:10 Greece 

Dec 18 18:00 US 

Dec 19 18:00 US 

Dec 20 10:30 UK 

Dec 20 16:30 Italy  

Dec 20 18:00 US 

Dec 21 16:30 Italy