NZD/USD Fundamental Analysis December 24, 2012 Forecast

Analysis and Recommendation:

The NZD/USD is trading at 0.8304 following the global currency markets. Commodity currencies suffered the worst of the reversal of sentiment late yesterday, as traders as a whole dumped risk assets and moved to safety.  The kiwi is headed for a 1.9 percent weekly decline, after US Republicans called off a vote on a plan to avert the fiscal cliff of US$600 billion tax increases and spending cuts, raising the risk of recession next year. US Republican leaders called off a vote in Congress on a measure put up by Speaker John Boehner to break the deadlock on negotiations with the White House, pushing out any deal until after Christmas. As US legislators drag their heels on cutting a deal, markets grow more pessimistic after similar delays over lifting the nation’s debt ceiling led to a credit rating downgrade last year.

Also the NZ dollar took a hit yesterday after government figures showed the economy grew at a 0.2 percent quarterly pace in the September quarter, half what economists were picking.

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 21, 2012 actual v. forecast

 

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

There are no eco events on the calendar for Monday, December 24 and markets will be closed on Tuesday December 25^th. Traders and politicians are expected to be out of their offices for the season with low volume and low volatility. The only global issue is the US fiscal deadline. I would like to wish all of my readers a safe and healthy holiday season and all the best in the new year.

Government Bond Auction

Date Time Country 

Dec 21 16:30 Italy  

Dec 26 01:30 Japan 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy