Forex - NZD/USD weekly outlook: December 6-10

Published 12/05/2010, 09:47 AM
NZD/USD
-
Investing.com – The week beginning December 6 comes after one which saw the New Zealand dollar post its biggest weekly gain against its U.S. counterpart in a month, as demand for higher-yielding assets was supported by rising commodity prices.

NZD/USD hit 0.7396 on Tuesday, the pair’s lowest since October 5; the pair subsequently consolidated at 0.7658 by close of trade on Friday, jumping 1.78% over the week.

The pair is likely to find support at 0.7453, last Thursday’s low, and resistance at 0.7730, the high of November 23.

The kiwi tumbled to an 8-week low on Tuesday, as global risk appetite was hit by ongoing worries over sovereign debt contagion in the euro zone.

On Wednesday, the kiwi rebounded after official data showed that China’s manufacturing output expanded at the fastest pace in seven months in November. China is New Zealand’s second-largest overseas market.

Meanwhile, the kiwi surged 1.42% on Friday after U.S. data showed that non-farm payrolls rose 39,000 last month, much weaker than expectations for 140,000 new jobs. The unemployment rate also rose to a 7-month high of 9.8%.

Also last week, official data showed that New Zealand’s trade deficit narrowed significantly more-than-expected in October, led by a surge in dairy exports amid increased global prices and demand from China.

Next week, the U.S. is to release key weekly data on initial jobless claims, as well as a report on the country’s trade balance and preliminary data on consumer sentiment. Meanwhile, Federal Reserve Chairman, Ben Bernanke, is to appear in a televised interview.

Elsewhere, the Reserve Bank of New Zealand is to announce its benchmark interest rate. The announcement will be followed up with the closely watched rate statement and monetary policy statement.

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

Monday, December 6

In the U.S., Federal Reserve Chairman, Ben Bernanke is due to speak about monetary policy in an interview to be aired on CBS. The interview was given a week earlier.

Tuesday, December 7

The U.S. is to publish data on economic optimism and consumer credit.

Later in the day, New Zealand is to publish official data on manufacturing sales, a leading indicator of health in the manufacturing sector.

Wednesday, December 8

The Reserve Bank of New Zealand is to announce its benchmark interest rate; the announcement will be followed up with the closely watched rate statement and monetary policy statement, which provides a valuable insight into the bank's view of economic conditions and inflation.

Meanwhile, the U.S. is to publish official data on crude oil inventories.

Thursday, December 9

The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health, as well as reports on wholesale inventories and natural gas storage.

Later in the day, New Zealand is to produce data on its overseas trade index, which is the change in the price of internationally traded goods and services.

Friday, December 10

The U.S. is to round up the week with official data on its trade balance, federal budget balance and import prices. The country is also set to publish preliminary data from the University of Michigan on consumer sentiment and inflation expectations.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.