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Forex - NZD/USD weekly outlook May 31 - June 4

Published 05/30/2010, 10:42 AM
NZD/USD
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Investing.com – The New Zealand dollar plunged to a fresh 10-month low against its American counterpart early last week, amid the ongoing euro zone sovereign debt crisis, before rebounding on upbeat economic data.

NZD/USD plummeted to 0.6561 on Tuesday, its lowest since July 31 2009; the pair subsequently bounced to reach 0.6785 by the close of trade on Friday.

The pair is likely to find support at 0.6561and resistance at 0.6903, the high of July 19.

The kiwi’s decline came after a wave of risk aversion swept markets causing growth-linked currencies such as the New Zealand dollar to experience sharp losses.

Next week, a key report will be published on business confidence in New Zealand. Another report will also be released on commodity prices in the natural resources-rich nation.

In the United States, meanwhile, important data will be released on U.S. nonfarm unemployment and initial jobless claims, as well as on the country's manufacturing sector and housing market. Reports will also be published on U.S. hourly earnings, construction spending, vehicle sales, factory orders and crude oil inventories. The Chairman of the Federal Reserve, Ben Bernanke, is also due to speak at a public engagement.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect NZD/USD.

Monday, May 31


The National Bank of New Zealand will publish a closely watched report on business confidence in the country, based on a survey of about 1,500. The results are seen as a leading indicator of economic health.

Banks in the U.S. will be closed for the Labor Day holiday.

Tuesday, June 1

The Australia and New Zealand Banking Group, one of New Zealand's leading financial services firms, will publish its monthly ANZ Commodity Price Index. The index measures changes in the selling price of exported commodities, a major component of the country’s economy.

The U.S. will publish a report on spending in the construction sector. An industry group, the Institute for Supply Management, will also release an important report on the U.S. manufacturing sector.

Wednesday, June 2

An industry group in the U.S. will release a report on pending home sales, a leading indicator of economic health. The report, which excludes new construction, measures the change in the number of homes under contract to be sold but still awaiting the closing transaction.

Thursday, June 3

The U.S. Department of Labor will release data on labor efficiency when producing goods, excluding the farming industry. The data processing firm ADP will publish a closely watched report on U.S. nonfarm employment change.

Later in the day, the U.S. will release key data on initial jobless claims, an important indicator of overall economic health. The U.S. will also publish a report on the cost of labor, again excluding the farming industry. Later in the day, Fed Chair Ben Bernanke is scheduled to speak at an event in Detroit.

Friday, June 4

The U.S. will publish key employment data in a report on nonfarm payrolls, a leading indicator of consumer spending and overall economic health. The country will also announce its unemployment rate.



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