Forex - NZD/USD weekly outlook: December 8 - 12

Investing.com - The New Zealand dollar fell to a four-week low against its U.S. counterpart on Friday, as stronger than forecast U.S. nonfarm payrolls data bolstered bets that the Federal Reserve will begin to raise rates sooner than previously thought.

NZD/USD hit 0.7700 on Friday, the pair's lowest since November 7, before subsequently consolidating at 0.7715 by close of trade on Friday, down 0.86% for the day and 1.61% lower for the week.

The pair is likely to find support at 0.7659, the low from November 7, and resistance at 0.7821, the high from December 4.

The U.S. dollar rallied after the Department of Labor said that the U.S. economy added 321,000 jobs in November, far more than the 225,000 forecast by economists and the largest monthly increase in almost three years.

October’s figure was revised up to 243,000 from a previously reported 214,000, while the unemployment rate remained unchanged at a six-year low of 5.8%.

The upbeat data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner than markets are expecting.

The US dollar index, which measures the greenback against a basket of six major currencies, hit a peak of 89.50, the strongest level since March 2009 and ended the day up 0.82% to 89.39.

In the week ahead investors will be awaiting Thursday's U.S. data on retail sales and jobless claims and Friday’s report on consumer sentiment for further indications on the strength of the economic recovery.

A policy decision by the Reserve Bank of New Zealand on Wednesday will also be in focus.

Meanwhile, China is to produce what will be closely watched reports on trade, consumer prices and industrial production in the week ahead. The Asian nation is New Zealand's second-largest trade partner.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday as there are no relevant events on this day.

Monday, December 8

China is to publish data on the trade balance, the difference in value between imports and exports.

Wednesday, December 10

China is to publish data on the consumer price index.

Later in the day, the Reserve Bank of New Zealand is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. The announcement is to be followed by a press conference.

Thursday, December 11

RBNZ Governor Graeme Wheeler is to testify before the Finance and Expenditure Select Committee in Wellington. His comments will be closely watched.

The U.S. is to release data on retail sales, the government measure of consumer spending, as well as the weekly report on jobless claims.

Friday, December 12

China is to release data on industrial production and fixed asset investment.

The U.S. is to round up the week with data on producer prices and a preliminary report on consumer sentiment.