Investing.com - The New Zealand dollar was little changed against the U.S. dollar on Friday, as market players mulled the release of November’s non-farm payrolls data while continuing to monitor negotiations among U.S. lawmakers to avoid the looming “fiscal cliff” crisis.
NZD/USD hit 0.8347 on Thursday, the pair’s highest since September 28; the pair subsequently consolidated at 0.8321 by close of trade, 1.47% higher for the week.
The pair is likely to find support at 0.8282, the low of December 6 and resistance at 0.8347, Thursday’s high.
The U.S. Department of Labor said the economy added 146,000 jobs in November, beating forecasts for an increase of 93,000. The unemployment rate fell to 7.7%, an almost four year low from 7.9% in October.
But sentiment remained under pressure as investors digested less encouraging details of the jobs report.
According to the data, the decline in the unemployment rate was attributed to more people dropping out of the labor force, while previous month’s gain of 171,000 was revised down to 138,000.
Also Friday, the Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to a seasonally adjusted 74.5 for December from 82.7 in November.
Analysts had expected the index to fall only slightly to 82.4.
Meanwhile, investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the three weeks left before the deadline.
The kiwi rallied to the highest level since late-September against the greenback on Thursday after the Reserve Bank of New Zealand left interest rates unchanged.
In a widely expected move, the RBNZ held the benchmark interest rate at a record low of 2.50%, earlier in the day.
Commenting on the decision, RBNZ Governor Graeme Wheeler said that "with the reconstruction-driven pick up in investment now clearly under way, the bank will also continue to watch for a greater degree of inflation pressure than is assumed."
In the coming week, investors will be focusing on the outcome of the Federal Reserve’s policy meeting on Wednesday, amid expectations that policymakers will continue to pursue a policy of monetary easing in order to support the U.S. economic recovery.
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 Monday, as there are no relevant events on this date.
Tuesday, December 11
The U.S. is to publish a government report on the trade balance, the difference in value between imports and exports.
Wednesday, December 12
In the U.S., the Federal Reserve is to announce the federal funds rate. The announcement is to be accompanied by the bank’s rate statement and followed by a press conference with Chairman Ben Bernanke to discuss the rate decision and the economic outlook.
The U.S. is also to release official data on import prices and crude oil inventories.
Thursday, December 13
The U.S. is to produce government data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity, as well as data on producer price inflation and the weekly government report on initial jobless claims.
Friday, December 14
The U.S. is to round up the week with official data on consumer inflation, the capacity utilization rate, industrial production and preliminary data on manufacturing activity.
NZD/USD hit 0.8347 on Thursday, the pair’s highest since September 28; the pair subsequently consolidated at 0.8321 by close of trade, 1.47% higher for the week.
The pair is likely to find support at 0.8282, the low of December 6 and resistance at 0.8347, Thursday’s high.
The U.S. Department of Labor said the economy added 146,000 jobs in November, beating forecasts for an increase of 93,000. The unemployment rate fell to 7.7%, an almost four year low from 7.9% in October.
But sentiment remained under pressure as investors digested less encouraging details of the jobs report.
According to the data, the decline in the unemployment rate was attributed to more people dropping out of the labor force, while previous month’s gain of 171,000 was revised down to 138,000.
Also Friday, the Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to a seasonally adjusted 74.5 for December from 82.7 in November.
Analysts had expected the index to fall only slightly to 82.4.
Meanwhile, investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the three weeks left before the deadline.
The kiwi rallied to the highest level since late-September against the greenback on Thursday after the Reserve Bank of New Zealand left interest rates unchanged.
In a widely expected move, the RBNZ held the benchmark interest rate at a record low of 2.50%, earlier in the day.
Commenting on the decision, RBNZ Governor Graeme Wheeler said that "with the reconstruction-driven pick up in investment now clearly under way, the bank will also continue to watch for a greater degree of inflation pressure than is assumed."
In the coming week, investors will be focusing on the outcome of the Federal Reserve’s policy meeting on Wednesday, amid expectations that policymakers will continue to pursue a policy of monetary easing in order to support the U.S. economic recovery.
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 Monday, as there are no relevant events on this date.
Tuesday, December 11
The U.S. is to publish a government report on the trade balance, the difference in value between imports and exports.
Wednesday, December 12
In the U.S., the Federal Reserve is to announce the federal funds rate. The announcement is to be accompanied by the bank’s rate statement and followed by a press conference with Chairman Ben Bernanke to discuss the rate decision and the economic outlook.
The U.S. is also to release official data on import prices and crude oil inventories.
Thursday, December 13
The U.S. is to produce government data on retail sales, the leading indicator of consumer spending, which accounts for the majority of overall economic activity, as well as data on producer price inflation and the weekly government report on initial jobless claims.
Friday, December 14
The U.S. is to round up the week with official data on consumer inflation, the capacity utilization rate, industrial production and preliminary data on manufacturing activity.