Investing.com - The New Zealand dollar rose against its U.S. counterpart on Friday, as downbeat U.S. consumer sentiment data added to concerns over the strength of the country's economic recovery.
NZD/USD hit 0.7485 on Thursday, the pair's highest since January 28, before subsequently consolidating at 0.7455 by close of trade on Friday, up 0.42% for the day and 1.29% higher for the week.
The greenback came under pressure after data showed that U.S. consumer sentiment unexpectedly deteriorated in February.
The preliminary reading of the University of Michigan’s consumer sentiment index fell to 93.6, down from January’s final reading of 98.1. Economists had forecast an unchanged figure.
The report came a day after data showing that U.S. retail sales unexpectedly fell 0.8% last month after dropping 0.9% in December, indicating that consumer spending remained sluggish at the start of the year.
The weak data prompted investors to trim back long positions in the greenback ahead of a three-day holiday weekend. U.S. markets will be closed on Monday in observance of Presidents' Day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.06% to 94.24 late Friday to end the week down 0.5%.
The kiwi rose to a two-week high against the greenback on Thursday as sentiment improved after Russian President Vladimir Putin confirmed that a cease fire deal with Ukraine starting February 15 had been reached, following months of violence.
In the coming week, investors will be focusing on Wednesday’s minutes of the latest Federal Reserve meeting for further indications on when the central bank may start to hike interest rates.
Fresh Greek debt talks on Monday will also be in focus after discussions on a new debt deal last week ended without an agreement.
Greece’s current €240 billion bailout is due to expire on February 28 and the new Greek government does not want it extended, fuelling fears over a conflict with its creditors which could trigger the country’s exit from the euro zone.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 16
New Zealand is to release data on fourth quarter retail sales.
Officials from Greece and the European Union were due to hold fresh talks in Brussels to discuss a solution to Greece's bailout program.
Markets in the U.S. are to remain closed for the Presidents Day holiday.
Tuesday, February 17
The U.S. is to release data on manufacturing activity in New York State as well as a private sector survey of home builders.
Wednesday, February 18
Markets in China are to remain closed for a national holiday.
The U.S. is to release a string of economic reports, including data on producer prices, housing starts, building permits and industrial production. Later in the day, the Federal Reserve is to publish the minutes of its January meeting.
Thursday, February 19
Markets in China are to remain closed for a national holiday.
The U.S. is to publish a report on manufacturing activity in the Philadelphia region and the weekly government figures on initial jobless claims.
Friday, February 20
Markets in China are to remain closed for a national holiday.
The U.S. is to round up the week with preliminary data on manufacturing activity.