NZD/USD Weekly Fundamental Analysis December 30, 2013 – January 3, 2014 Forecast

Weekly Analysis and Recommendation: 

The NZD/USD eased throughout the week to end at 0.8154 as the US dollar gained momentum on a quiet trading week. After the holiday the US dollar eased as traders looked for higher risk assets. The New Zealand dollar weakened as the greenback is supported by an improving outlook for the US economy.

Most financial centers in Europe and the Americas were closed for Christmas on Wednesday with many also shut for Boxing Day. Markets are “very, very subdued”, Stuart Ive, senior adviser at OMF said. “There’s not going to be a great deal going on.” “The kiwi is drifting a little bit lower as we have a US dollar that continues to strengthen. It’s a reflection of the US economy strengthening. It adds to that picture that the US is on the path for future tapering,” he said.

The New Zealand and Australian dollars also weakened on concern about the stability of the financial system in China, a major trading partner for the two nations, Mr Ive said. The People’s Bank of China on Tuesday injected 29 billion yuan into the nation’s financial system on concern rising yields for interbank lending could cause a credit crunch.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Historical: From 2011 to Present

Highest: 0.8842 USD on Aug 01, 2011

Average: 0.8131 USD over this period

Lowest: 0.7371 USD on Nov 25, 2011

 

Major Economic Events for the week of December 23-27 actual v. forecast for Yen, the Aussie, the Kiwi and USD

 

Economic Highlights of the coming week that affect the AUD, JPY, NZD and USD