NZD/USD Forecast Dec. 19, 2011, Fundamental Analysis

The NZD/USD pair dropped to its lowest level in three weeks, after the US dollar soared against most of its major counterparts as the current concerns over the global economic outlook reduced demand for higher-yielding currencies.

The current sentiment supports the US dollar and pushed it to record its highest level in eleven months against the euro, as concerns increased regarding the EU debt crisis after the latest EU leaders’ summit failed to provide the market with confidence.

On Monday at 21:00 GMT (Sunday), the New Zealand economy will issue the Westpac NZ Consumer Confidence for the fourth quarter, which had a previous reading of 112.

The Performance Services Index for November will be released at 21:30 GMT with a prior reading of 50.6.

At 00:00 GMT the New Zealand economy will release the NBNZ Activity Outlook for December which had a previous reading of 28.8. As for the NBNZ Business Confidence for December it had a prior reading of 18.3.