NZD/USD Fundamental Analysis December 5, 2012 Forecast

Analysis and Recommendation:

The NZD/USD climbed this morning after the rate decrease issued by the RBA. The kiwi is trading at 0.8227 as the USD was weak and the kiwi added momentum on positive Chinese data and overall global sentiment. The kiwi followed its Australian counterpart higher after the Reserve Bank of Australia cut interest rates to a level not seen since 2009 in a bid to revive economic activity as the resources boom peters out.

The RBA board cut the target cash rate a quarter point to 3 percent, as expected, in a bid to “foster sustainable growth in demand and inflation outcomes consistent with the target over time,” governor Glenn Stevens said. The RBA has started seeing signs of easier monetary conditions emerge, though the Australian dollar was still higher than expected, and Stevens said the resources boom is near its peak.

The RBA’s review comes two days before the Reserve Bank of New Zealand reviews monetary policy, with Governor Graeme Wheeler tipped to keep the official cash rate on hold at 2.5 percent. That would cut Australia’s interest rate advantage to half a percentage point.

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 4, 2012 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Dec 05 09:30 Spain 

Dec 05 10:30 Germany 

Dec 05 11:00 Norway 

Dec 05 15:30 Sweden 

Dec 06 01:30 Japan 

Dec 06 09:50 France 

Dec 06 16:00 US 

Dec 07 16:30 Italy