NZD/USD Fundamental Analysis December 31, 2012, Forecast

Analysis and Recommendation:

The NZD/USD is trading at 0.8203 moving up and down as the US dollar index flexes.  The kiwi gained in local trading on optimism US politicians will be able to set aside partisan differences and cut a deal on the US$600 billion in Federal tax increases and spending reductions with a vote set for Sunday.

The US House of Representatives will hold a session on Sunday in a last ditch effort to avert the fiscal cliff, which comes into effect on Jan. 1. Congress majority leader and Republican Eric Cantor announced the vote on Twitter after Senate majority leader and Democrat Harry Reid said a deal was looking unlikely. Politicians don’t have to reach a compromise before the New Year and can amend legislation after it kicks in, though similar stalling tactics on the debt-ceiling debate last year saw Standard & Poor’s downgrade America’s credit rating.

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.

Markets will have a shortened day on Monday December 31^st and  most are closed on Tuesday January 1, 2013. Our analysis will be published as markets close on Monday and there will be no analysis on Tuesday. I want to wish all of my readers a happy and healthy new year. I hope you continue reading our analysis next year.

Economic Data December 28, 2012 actual v. forecast

 

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