Investing.com - The New Zealand dollar ended Friday’s session higher against its U.S. counterpart, as appetite for riskier assets strengthened following the release of stronger-than-expected U.S. nonfarm payrolls data.
NZD/USD hit 0.8584 on Tuesday, the pair’s highest since April 12; the pair subsequently consolidated at 0.8529 by close of trade on Friday, gaining 0.62% for the week.
The pair is likely to find support at 0.8454, Thursday’s low and resistance at 0.8581, Wednesday’s high.
The U.S. Department of Labor said the economy added 165,000 jobs in April, above expectations for an increase of 145,000, while job increases for the previous month were revised up to 138,000.
The U.S. unemployment rate unexpectedly fell to a four-month low of 7.5% from 7.6% in March.
Also Friday, a report by the Institute of Supply Management showed that the U.S. service sector expanded at the slowest pace in nine months in April.
The ISM non-manufacturing purchasing managers’ index fell to 53.1 from 54.4 in March, below expectations for a reading of 54.0.
A separate report showed that U.S. factory orders fell 4.0% in March, more than expectations for a 2.6% decline.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount, depending on the outlook for inflation and employment.
Elsewhere, the kiwi was higher against the euro on Friday, with EUR/NZD dipping 0.08% to hit 1.5367.
The single currency looked likely to remain under pressure after the European Central Bank cut interest rates to 0.5% from 0.75% on Thursday amid concerns over the deteriorating economic outlook for the euro zone.
The euro fell sharply on Thursday after ECB President Mario Draghi said the bank has an “open mind” on a negative deposit rate for banks. The deposit rate is the rate paid by the ECB on overnight deposits by euro zone banks.
In the week ahead, investors will be watching key employment data out of New Zealand as well as a speech by Fed Chairman Ben Bernanke.
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 that day.
Tuesday, May 7
New Zealand is to release data on labor costs, a leading indicator of consumer inflation.
Wednesday, May 8
The Reserve Bank of New Zealand is to publish its bi-annual financial stability report.
Thursday, May 9
New Zealand is to release government data on the change in the number of people employed and the unemployment rate, a leading economic indicator.
Meanwhile, The U.S. is to publish the weekly government report on initial jobless claims.
Also Thursday, China is to release official data on consumer price inflation, which accounts for the majority of overall inflation. The Asian nation is New Zealand’s largest trade partner.
Friday, May 10
In the U.S., Fed Chairman Ben Bernanke is to speak; his comments will be closely watched. The U.S. is also to release official data on the federal budget balance.
NZD/USD hit 0.8584 on Tuesday, the pair’s highest since April 12; the pair subsequently consolidated at 0.8529 by close of trade on Friday, gaining 0.62% for the week.
The pair is likely to find support at 0.8454, Thursday’s low and resistance at 0.8581, Wednesday’s high.
The U.S. Department of Labor said the economy added 165,000 jobs in April, above expectations for an increase of 145,000, while job increases for the previous month were revised up to 138,000.
The U.S. unemployment rate unexpectedly fell to a four-month low of 7.5% from 7.6% in March.
Also Friday, a report by the Institute of Supply Management showed that the U.S. service sector expanded at the slowest pace in nine months in April.
The ISM non-manufacturing purchasing managers’ index fell to 53.1 from 54.4 in March, below expectations for a reading of 54.0.
A separate report showed that U.S. factory orders fell 4.0% in March, more than expectations for a 2.6% decline.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount, depending on the outlook for inflation and employment.
Elsewhere, the kiwi was higher against the euro on Friday, with EUR/NZD dipping 0.08% to hit 1.5367.
The single currency looked likely to remain under pressure after the European Central Bank cut interest rates to 0.5% from 0.75% on Thursday amid concerns over the deteriorating economic outlook for the euro zone.
The euro fell sharply on Thursday after ECB President Mario Draghi said the bank has an “open mind” on a negative deposit rate for banks. The deposit rate is the rate paid by the ECB on overnight deposits by euro zone banks.
In the week ahead, investors will be watching key employment data out of New Zealand as well as a speech by Fed Chairman Ben Bernanke.
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 that day.
Tuesday, May 7
New Zealand is to release data on labor costs, a leading indicator of consumer inflation.
Wednesday, May 8
The Reserve Bank of New Zealand is to publish its bi-annual financial stability report.
Thursday, May 9
New Zealand is to release government data on the change in the number of people employed and the unemployment rate, a leading economic indicator.
Meanwhile, The U.S. is to publish the weekly government report on initial jobless claims.
Also Thursday, China is to release official data on consumer price inflation, which accounts for the majority of overall inflation. The Asian nation is New Zealand’s largest trade partner.
Friday, May 10
In the U.S., Fed Chairman Ben Bernanke is to speak; his comments will be closely watched. The U.S. is also to release official data on the federal budget balance.