NZD/USD Weekly Forecast Dec. 26-30, 2011, Fundamental Analysis

The NZD/USD pair reached its highest level in two weeks, as the New Zealand dollar was able to record gains against other majors due to the cheerful GDP numbers from New Zealand.

The current market sentiment showed a little improvement, which increased demand of higher-yielding currencies to support the New Zealand dollar against greenback.

The current market sentiment was supported by good macroeconomic data from the US the ECB three-year loans, and the end of the year position squaring, but caution still exists as the EU debt crisis generally remains in control.

The New Zealand economy will not release any fundamental during this week, in addition to the low volume in the market due to the holidays, which will drag the NZD/USD pair to a narrow range trading.

Major highlights for this week that will affect the NZD/USD pair’s trading:

Monday December 26:

Christmas Monday, markets closed.

Tuesday December 27:

On Tuesday at 15:00 GMT, the U.S. economy will release the Consumer Confidence for December, where it’s expected to rise to 58.5 from the previous reading of 56.0.

Wednesday December 28:

On Wednesday, both economics will not issue any fundamental, where the pair’s movement will depend on the market sentiment.

Thursday December 29:

On Thursday at 13:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance dropped to 364 thousand last week.

The U.S. economy will issue the Chicago Purchasing Manager for December at 14:45 GMT, where the prior reading was 62.6 and it’s expected to come at 60.2.

At 15:00 GMT, Pending Home Sales for November will be and expected with 1.8% rise after 10.4%.

Friday December 30:

On Friday, both economics will not issue any fundamental, where the pair’s movement will depend on the market sentiment.