Investing.com - The New Zealand dollar was flat against its U.S. counterpart on Friday, after paring some of the week’s gains as market sentiment weakened amid ongoing concerns over the worsening of the euro zone’s debt crisis.
NZD/USD hit 0.7906 on Tuesday, the pair’s highest since November 14; the pair subsequently consolidated at 0.7802 by close of trade on Friday, adding 0.35% over the week.
The pair is likely to find support at 0.7738, the low of December 6 and resistance at 0.7878, the high of December 5.
The risk-related kiwi came under pressure on Friday as concerns over the sovereign funding needs of troubled euro zone states, as well as signs of weakness in the region’s banking sector overshadowed better-than-expected U.S. jobs data.
The U.S. Department of Labor said nonfarm payrolls increased by 200,000 in December from a downwardly revised 100,000 the previous month and surpassing expectations for a 150,000 increase. The unemployment rate unexpectedly fell to 8.5%, the lowest level since February 2009.
The greenback rose broadly earlier in the week after France sold EUR4.02 billion of 10-year bonds in an auction which met with solid demand but at higher yields.
France is seen as vulnerable to losing its triple-A credit rating in the coming weeks, after it was put on negative watch by ratings agencies Standard & Poor’s and Fitch’s in December, amid concerns over the handling of the financial crisis in the euro zone.
The French auction came one day after an auction of German 10-year government debt which encountered lower than average investor demand.
Demand for the U.S. dollar was also boosted as fears over the strength of the euro zone’s banking sector intensified after a report on Thursday showed that overnight deposits at the European Central Bank reached a new record high of EUR455 billion, indicating that European banks remain unwilling to lend to each other.
In the week ahead, investors will be closely watching a meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel on Monday for any signs of progress in resolving the region’s two-year old debt crisis.
France, Greece, Germany, Italy and Spain are all scheduled to hold auctions of government debt, while the ECB is to hold its first policy-setting meeting of the New Year.
Also next week, the U.S. is to publish official data on retail sales and consumer sentiment, while New Zealand is to release data on the trade balance and building consents.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, January 9
New Zealand is to produce official data on the trade balance, the difference in value between imported and exported goods.
Later in the day, Federal Open Market Committee member Dennis Lockhart is to speak.
Tuesday, January 10
New Zealand is to publish an official report on building consents.
Elsewhere, U.S. FOMC members John Williams and Sandra Pianalto are to speak.
Wednesday, January 11
The U.S. is to produce official data on crude oil stockpiles, while the Federal Reserve is to release its Beige Book. In addition, FOMC member Dennis Lockhart is to speak.
Thursday, January 12
New Zealand is to publish industry data on house price inflation, a leading indicator of the housing industry’s health.
Later Thursday, the U.S. is to release official data on retail sales and initial jobless claims. The country is also to publish government data on business inventories, a signal of future business spending, followed by a report on the federal budget balance.
Friday, January 13
The U.S. is to round up the week with data on the trade balance, as well as government data on import prices. In addition, the University of Michigan is to release preliminary data on inflation expectations and consumer sentiment, a leading indicator of consumer spending.
NZD/USD hit 0.7906 on Tuesday, the pair’s highest since November 14; the pair subsequently consolidated at 0.7802 by close of trade on Friday, adding 0.35% over the week.
The pair is likely to find support at 0.7738, the low of December 6 and resistance at 0.7878, the high of December 5.
The risk-related kiwi came under pressure on Friday as concerns over the sovereign funding needs of troubled euro zone states, as well as signs of weakness in the region’s banking sector overshadowed better-than-expected U.S. jobs data.
The U.S. Department of Labor said nonfarm payrolls increased by 200,000 in December from a downwardly revised 100,000 the previous month and surpassing expectations for a 150,000 increase. The unemployment rate unexpectedly fell to 8.5%, the lowest level since February 2009.
The greenback rose broadly earlier in the week after France sold EUR4.02 billion of 10-year bonds in an auction which met with solid demand but at higher yields.
France is seen as vulnerable to losing its triple-A credit rating in the coming weeks, after it was put on negative watch by ratings agencies Standard & Poor’s and Fitch’s in December, amid concerns over the handling of the financial crisis in the euro zone.
The French auction came one day after an auction of German 10-year government debt which encountered lower than average investor demand.
Demand for the U.S. dollar was also boosted as fears over the strength of the euro zone’s banking sector intensified after a report on Thursday showed that overnight deposits at the European Central Bank reached a new record high of EUR455 billion, indicating that European banks remain unwilling to lend to each other.
In the week ahead, investors will be closely watching a meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel on Monday for any signs of progress in resolving the region’s two-year old debt crisis.
France, Greece, Germany, Italy and Spain are all scheduled to hold auctions of government debt, while the ECB is to hold its first policy-setting meeting of the New Year.
Also next week, the U.S. is to publish official data on retail sales and consumer sentiment, while New Zealand is to release data on the trade balance and building consents.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, January 9
New Zealand is to produce official data on the trade balance, the difference in value between imported and exported goods.
Later in the day, Federal Open Market Committee member Dennis Lockhart is to speak.
Tuesday, January 10
New Zealand is to publish an official report on building consents.
Elsewhere, U.S. FOMC members John Williams and Sandra Pianalto are to speak.
Wednesday, January 11
The U.S. is to produce official data on crude oil stockpiles, while the Federal Reserve is to release its Beige Book. In addition, FOMC member Dennis Lockhart is to speak.
Thursday, January 12
New Zealand is to publish industry data on house price inflation, a leading indicator of the housing industry’s health.
Later Thursday, the U.S. is to release official data on retail sales and initial jobless claims. The country is also to publish government data on business inventories, a signal of future business spending, followed by a report on the federal budget balance.
Friday, January 13
The U.S. is to round up the week with data on the trade balance, as well as government data on import prices. In addition, the University of Michigan is to release preliminary data on inflation expectations and consumer sentiment, a leading indicator of consumer spending.