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Forex - NZD/USD weekly outlook: January 10-14

Published 01/09/2011, 08:33 AM
NZD/USD
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Investing.com – Last week saw the New Zealand dollar drift lower against its U.S. counterpart, retreating from close to a five-week high before trimming losses on Friday, following disappointing U.S. payrolls data.

NZD/USD hit 0.7551 on Thursday, the pair’s lowest since December 29; the pair subsequently consolidated at 0.7597 by close of trade on Friday, tumbling 2.07% over the week.

The pair is likely to find support at 0.7548, last Friday’s low and resistance at 0.768, last Wednesday’s high.

On Friday, the U.S. Department of Labor Department said that non-farm payrolls rose by 103,000 in December, well below the 150,000 forecast gain. However, the unemployment rate fell more-than-expected, sliding to 9.4% from 9.8%.

Following the report, the kiwi reversed the day’s losses against the greenback, to close up 0.42% on the day.

Earlier in the week, the greenback was boosted after a report from payroll processor ADP showed a job expansion of 297,000 in December, almost tripling economists' forecasts and after the Institute for Supply Management said its non-manufacturing index rose to 57.1 December, its highest level since May 2006.

In the week ahead, the U.S. is to release a flurry of economic data, with a major highlight being Friday’s report on retail sales, while New Zealand is to publish key data on business confidence.

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

Monday, January 10

New Zealand is to publish a report on business confidence, a leading indicator of economic health. The country is also to release official data on building consents and its trade balance, the difference in value between imported and exported goods and services over the month.

Tuesday, January 11

The U.S. is to publish official data on wholesale inventories, as well as a report on economic optimism.

Wednesday, January 12

The U.S. is to publish reports on import prices, crude oil inventories and the federal budget balance, while the Federal Reserve is to publish its Beige Book, which contains analysis that the Federal Open Market Committee looks at when making interest rate decisions.

Thursday, January 13


The U.S. is to release a flurry of data, including a key weekly report on initial jobless claims, a leading indicator of overall economic health. The country is also to publish data on producer price inflation and on its trade balance.

Later in the day, Federal Reserve Chairman Ben Bernanke is to speak at a public engagement. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

Also Thursday, New Zealand is to publish data on commodity prices.

Friday, January 14

The U.S. is to round up the week with a string of data, including a report on consumer price inflation, which accounts for a majority of overall inflation. The country is also slated to produce official data on industrial production, the capacity utilization rate as well as a report on retail sales, the primary gauge of consumer spending.

Later in the day, the country is to produce preliminary data from the University of Michigan on consumer sentiment and inflation expectations as well as official data on business inventories.


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